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Opinions of Tuesday, 16 June 2009

Columnist: Amankwah, Nana Kofi

Why NDC Sending Our Nation Economy Backward

After six months in office, the NDC administration’s economic policies have already turned the page from the good economic policies implemented by the previous NPP administration. The economics policies which were laid down by the Kufour NPP administration were able to move the nation’s developments forward. At the same time, these policies also allowed the country to enter successfully into the world spot rates capital market that determines prices. These policies attracted foreign investors with huge capital into our nation’s economy.

Ghanaians will never forget the doom days of our nation’s disastrous economy that was dictated by the International Monetary Fund (IMF). The IMF members had the final say to determine how and which economic policies our nation should adopt. The NPP administration worked hard to rid the nation of the IMF’S dubious polices which never serve the interest of any nation that has ever joined that organization. It is also imperative for Ghanaians to realize when our nations economy took a plunge for the worse, it took a long time before resuming its course for growth. Now the NDC Party and the John Evans Attah Mills administration cannot explain their reasons why it has taken this draconian decision. Mills is determined to send the nation backwards in the hands of (IMF) for their economy policy, which will never yield any better results for our nation in either the short or long term economic interest of the country.

The question I’m asking myself is: Is this not the Mills who told Ghanaians that he had a PhD in economics? Does he actually know what he is doing to our nation’s economy by allowing the IMF to tell the nation what to do? Is this IMF the only institution where NDC and Mills administration can go and seek financial help? Why cannot Evans Attah Mills and his administration go else where like China or Brazil which are countries with $280 billion dollars in tread surplus; or any other places for help, so that the conditions on loans are more moderate than the IMF? Nananum, Ladies and gentleman, instead of the Mills administration should be turning to former President John Agyekum Kufuor, for economic advice in the interest of our nation. Instead, Mills has chosen to send them to jail without the due process in a court of law.

The Nation’s Balance Sheet, since NDC assumed office our nations economy specifically GDP numbers’ have continued to decline along with the national currency. But gold and cocoa Products are up. However, the nation’s current account system, which is most vital to our nation’s economy, is totally in the red. The majority of Ghanaian’s who have no knowledge about the economic terms of current account systems do not know what it means. It represents goods our nation imports from a foreign country and what we export to other countries in order to balance the nation’s current accounts. Since Mills came to office, the nation cannot balance its current account system due to the increase by Mills administration of importation from Europe, the Middle East and other countries which have never done business with our nation. Instead of his administration buying our nation’s crude oil from Nigeria, he is buying from Europe. This has increased the nation’s current account deficit by 6 percent while domestic investment has also continued to decline.

In addition, the IMF has warned Attah Mills to remove its entire subsidy from the fuel prices, which has raised the fuel prices by 30%. While the current Wall Street crude oil spot rate at the world market is $71.25, this insensitive fuel policy, which Attah Mills NDC administration is now allowing the IMF to dictate to Ghana, is politically nonsensical. However, if the current spot rate is $71.25 and futures are $75.00 on what criteria should the government increase fuel by 30%?

In America fuel prices $2.30 per gallon while Attah Mills NDC administration is selling fuel for over 5 cedis per gallon. This is totally nonsense. The Tema oil Refinery debt the NDC and their Vice president claims, was left behind by the NPP is not true. This debt was created by the 19 years of the (P) NDC regime, which the NPP tried hard to pay off. Furthermore, Mills and his people who are in charge of (NPA), only base their decisions on the speculator’s assertions. Recently, Attah Mills and his NDC administration appointed the board members for Ghana National Petroleum Authority (NPA). The majority of these board members have no skills in oil business; they don’t even know the difference between the spot rates and futures. On behalf of all Ghanaians, I challenge Attah Mills and his NDC administration to explain his motive of appointing these individuals without haven knowledge to the task ahead of them to these positions. Is this what economists who hold PhD will give to Ghanaians to manage the nation’s economic affairs in (NPA)? Shame on you. Attah Mills and his NDC administration should realize that respect is not a gift. One has to earn it.

From: Nana Kofi Amankwah (New York)