CPP Will Pursue Equitable Distribution of Resources

Mr. Bright Oduro-Kwateng, a leading member of the Convention Peoples Party has stated that when voted into power in 2008, the party will bring about the equitable distribution of income in the country. He stated, “A CPP government will distribute Ghana’s resources equitably among all the regions in order to nurture, enhance and raise the living conditions of ordinary people.. This is in line with our unflinching commitment towards economic policies aimed at ensuring social justice and equality of opportunity for all. Ghanaians, the CPP stands for the poor and not the privilege few.”

Mr. Oduro-Kwateng was speaking to sections of the press when they called on him to comment on the discovery of “Africa’s biggest oil reserves in Ghana”. The firebrand economist cum politician stated that “though the discovery of oil in Ghana is welcoming news it does not necessarily mean that all our socio-economic problems will be solved immediately. Indeed, even if it is true as the NPP are claiming, we all know that it will take quite a long time for the country to benefit from such a discovery. For instance, it does not alter the fact that as a nation we continue to rely on ‘donor aid’ for the execution and implementation of governments budgets, the fact is, well over 40% of NPP re-current budget depends on donor support- what a shame! It does not also alter the fact that the NPP is pursuing a neo-colonialist economic policy which relies heavily on hand-outs from so-called donors, for us in the CPP they are not donors, they are creditors, PERIOD!

Bright noted the uneven distribution of resources in the country and said the NDC and NPP administrations have failed the Ghanaian people. He stated that apart from the youth programmes that he highlighted a few weeks ago, the party intends to develop Ghana’s physical and human infrastructures to ensure that the country is well positioned to truly become an inspiration and a conduit for African development. He said, “ Come to think of it that in Ghana today, over 42% of our children do not go beyond the JSS system and under the watch of both the NDC and NPP governments quality education has been a privilege for the few whilst the majority of our children have been denied their basic democratic and fundamental rights. Infact, it’s a scandal and unacceptable spectacle to see the future leaders of our country being excluded and dis-enfranchised by governments who pay lip service to quality education and human resource development. Where is the Positive Change that we were promised? Where are the jobs that we were promised for the huge reserve army of unemployed young people?

Mr. Oduro-Kwateng, who is a trained economist, said the party will invest huge resources in agro-based industries and establish a techno park in each region.

He noted that the challenges facing the nation today come from two inter-related fronts: (i) the energy crisis that is hurting both industries and household at the micro and macro levels and (ii) the weaknesses deriving from poor socio-economic planning by the past NDC administration and current NPP government. The CPP stalwart explained further that Ghana’s failure to formulate coherent economic policies can be traced back to the failed policies of liberalisation, privatisation and deregulation as well as unsound packages of macro-economic policies pursued by the NDC government through Structural Adjustment Programmes. Bright cited some of the areas that were badly affected. He said Ghana’s manufacturing industries have been destroyed, agricultural production has been reduced and public services have been weakened. He said the energy crisis is a case in point. He said lack of foresight and sheer arrogance on the part the NDC and NPP to plan for alternative energy policies has led to Ghana being in darkness today.

Mr. Oduro-Kwateng said the costs associated with the loss of these assets have fallen on the marginalised, especially the workers, farmers, small cottage producers, women and children. He added that the impact has been excessively harsh on the rural communities and the urban poor, especially the slum dwellers. He stated, “It’s an indictment against the NPP government that in Ghana today we import tomatoes from a semi-desert country like Burkina Faso, and other local staple food from neighbouring countries. In the 21st century we still rely on cutlasses and hoes for our agriculture and import rice well over $400 million and continue to talk about attaining middle-income status, what a joke and lack of vision”

Mr. Oduro-Kwateng said poverty among the rural population and those in the urban slums are marked and stated that the CPP would embark on massive development to encompass every sector. Commenting on the financial system in the country, Bright Oduro-Kwateng said there will be major reforms to prevent huge external debt, exchange rate instability and capital flow volatility. Bright questioned why for instance the government has allowed “Foreign Banks” to take over or merge with local Banks at a time as a nation we need to support our banks for the accumulation of capital. He said, “ certainly this has not been the experience in Singapore, Malaysia, South Korea and other emerging economies (which the NPP government are quick to use as their success capitalist countries) where the Banking sector has been strengthened by the state for the badly needed Capital Accumulation for development” He said with the discovery of large deposits of oil, huge hedge funds would be flowing into the country from financial institutions and the only way to stop the financial crisis that hit the Asian tigers in the 1990s is to tighten the regulatory policies and frame works to safeguard the financial institutions in the country. Bright explained that the CPP’s New Development Plan will develop agriculture, industry, services including health and public education. He said these policies would be supported through appropriate macro-economic policy measures.

The CPP will re-examine NPP’s reckless allocation of financial resources and the uncoordinated development projects. CPP will ensure imaginative savings measures such as reallocation of expenditure away from wasteful projects.

On the role of the Diaspora in Ghana’s developmental strategy, Oduro-Kwateng said CPP will make creative use of remittances from Ghanaians living abroad and establish an investment vehicle for the Diaspora to encourage them to invest in their motherland. Bright said foreign investment, especially from nationals abroad is necessary and will be selected to ensure it suits national objectives. He said such weaknesses as tax evasion by foreigners and the local elite will be prevented by bringing in very tough but fair regulatory policies and laws backed by statute to ensure genuine investors are protected.

Under the New Development Plan, social equity, social inclusion, national unity and respect for human rights will form the basis of the plan which will address the fundamental basic needs of our people-food security, shelter, access to primary health care, quality education and employment. Bright said the sorry state that the Niger Delta in Nigeria is in now and the huge income disparity between the 20% rich and the 80% poor in Angola would never be allowed to happen in Ghana under the CPP.

Bright said a CPP Economic Team will critically examine some of the progressive governments like Venezuela’s policies on the distribution of income from its natural resources as a guide to make sure the revenues that accrue from our mineral resources are used to tackle the deplorable poverty that has engulfed our nation. He said Ghana will not neglect agriculture to rely solely on the so-called newly found oil wealth. Agro based industries and livestock farming in the 3 northern regions would receive immediate attention with huge investments. The fishing ports along the coast of southern Ghana will also be modernised and the fishing industry will be given resources to increase their catch, coupled with storage facilities that would ensure the availability of fish at an affordable prices for all Ghanaians.

Bright said, “ A future CPP government will review the country’s Fishing Policy to protect our fishery stock and eliminate the current policy of allowing foreign companies to dominate our territorial waters for fishing which has the potential of depleting our fishing stock”.

The cocoa industry will receive renewed attention to ensure Ghana maintains her leading role as the country that produces the richest cocoa beans in the world. However, we will diversify our cash crop product and Shear Butter and other food/cash crop production in other regions will receive investments to ensure they modernize and increase their production. Bright explained that Ghana must be self sufficient in food production first, as well as, maintaining her lead in export of those cash crops that she has got comparative advantage.

On extractive industries, the CPP will ensure that not only does the income from their production benefit the areas, but the environmental policies of those industries will be revisited to ensure the impact on the producing areas meets the Kyoto agreement. In addition to this, the Environmental Protection Agency (EPA) will be restructured to increase its monitoring role of the environmental impact of all extracting companies and any company found causing environmental degradation will lose its operational license and will also be made to pay huge sums of compensation to the communities that they operate.

The CPP will ensure equitable and balanced allocation and distribution of resources among sectors, regions and people. The CPP will create the platform where every citizen is given equal opportunity to achieve his or her true potential. Bright said further that the announcement of an Oil find is very welcome news, but as this was not the first time that a Government of Ghana has announced the discovery of oil in Ghana - the Progress Party in 1970 and the NDC government had in the 90’s. There are many questions to ask.

He said the “significant and commercial quantities” of Oil announced then had seemingly not materialized , and thus this is not the time for jubilation and celebration but for serious thought and planning. “Ghana already has vast natural resources of Gold, Bauxite, Manganese, etc and the question we should all be asking is – “Are we as ordinary Ghanaians benefiting from the fruits of our natural resources.

The vast reserves of Gold within our soil is currently not owned by us, and the picture is much the same across Africa – the people of the Niger Delta in Nigeria for example have not and are not benefiting from the vast quantities of Oil drilled from beneath them. They watch as the Multi national oil companies drill and cart away their resources to benefit the economies of other countries and enrich the pockets of their corrupt leaders. The CPP is thus demanding cold hard facts from the government and not sentimental and emotional rhetoric.

• Exactly what is the size of the find?

• What is the estimated life of the reserve?

• Who has invested what?

• Who owns what?

• What is the stake of the Government and people of Ghana?

• How will this benefit Ghana?

• Will this reduce the huge cost of oil imports currently faced by Ghana, because with the current oil market set up in Ghana under the NPP the discovery of oil if the above questions are not addressed will mean that oil from our shores will still be expensive by the time it reaches TOR and subsequently petrol pumps.

We will be watching with a keen eye the steps that the Minister for Energy and indeed the President and his cabinet take to ensure that Ghana’s resources are protected for Ghana and used for the benefit of Ghanaians, .Forward Ever, Backwards Never, There Is Victory For Us “, Mr. Oduro Kwateng concluded.

Issued By the Communications Directorate CPP (UK & Ireland)