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Opinions of Tuesday, 10 March 2009

Columnist: Amankwah, Nana Kofi

The So-Called 0’8 Change Election Drop Remittances

Since the National Democratic Congress (NDC) administration took over from the previous administration the value of our national currency the cedis which was one cedis to one dollar has dropped significantly. The essence of dropping of our national currency is not only caused by inflation or the consumer index that has brought the gross domestic product (GDP) down, but also due to the drop of remittances from Ghanaians who live outside the country.

Ghanaians who are outside the country have become the nation’s assets. They provide the Gross National Products (GNP) for the nation to have major foreign currencies to sustain the economy. Through the circulation of head currency the bank of Ghana was able to balance its current accounts system without depending on our nation’s exports, income receipts and foreign loans. These Remittances have dropped drastically, which will cause devastation in our national inflation reduction and avoiding 5.3% quarterly increase as the nation fiscal policies show. According to the data from the bank of Ghana the remittances, which were recorded during the period of two years in 2006 and 2007, were the highest the nation has ever received from outside Ghanaians. In 2006 the amount was 4.2billion and 2007 4.6 billion these amount of foreign currency surpassed the nation’s export commodities revenues. The evidence of these remittances amount that are been sent to our nation from Ghanaians abroad to our nations economy were confirmed by the Late Finance Minister Hon; Baah Wriedu. The dropping of these remittances will have a huge economic impact to control inflation and balance the current accounts and also reduce the interest rate and our nation’s national debt.

Since the national currency began to plunge, the majority of us who have an economics background decided to conduct an investigation on the situation through survey from outside Ghanaians remittances that were been sent home. We have realized that the moneies which outside Ghanaians sent home to their relatives and their personal projects have dropped after the general elections. Some of the places where these transfers are made in African Markets and other financial institution are saying a majority of Ghanaians are angry at the way the 2008 elections ended. There is an old adage: if their brothers and sisters wanted to move the nation’s economic gains by the previous administration, they should not have voted the way they did. As a result of that they will not send money as they used to do. However, the majority of outside Ghanaians believe the NDC administration is not a party that can reduce fiscal deficit and soar of inflation. They have nothing good in economic development and managing a solid economy as the previous administration did. The point is this; there are financial crises around the world but if outside Ghanaians are able to contribute as they did in 2006 and 2007 the backdrop of the global credit crunch will not have major impact on the nation’s economic growth. The incoming Finance Minister Kwabena Duffuor will be able to use his common sense and make some effective cuts on government spending. Not advancing their new proposals of spending millions of taxpayers dollars for buying new cars for the NDC Ministers Chief Executives and duty Ministers across the nation and stop wasting unnecessary revenues the nation can manage inflation. Some section of the outside Ghanaians community believes the so-called change government will not benefit the nation but their own self- aggrandizing political interest. Although, if all that they are saying is true, our contribution towards to Ghana’s economic should not only be a moral imperative but an obligation because respect is not a gift. One has to earn it. I urge outside Ghanaians to try as much as they can and put the interest of our nation first over political party. Let us all continue to earn respect from our brothers and sisters who acknowledge our contribution to the nation. Ghana is our home and it will always continue to be our home. Let us all do our part and help our nation we so dearly love. God Bless you all.

From: Nana Kofi Amankwah (New York)

Source: Amankwah Nana Kofi