A former Ghanaian leader, Jerry John Rawlings, has highlighted
growing economic hardship in Ghana in a recent interview with The
Vanguard, a Nigerian newspaper.
“In my country in 1979, there was no food in the market, things were
very terrible. But today there is food in the market but people cannot
afford it,” Rawlings said, echoing a recent wave of public agitations,
after a string of tax increases and utility price enhancements prompted
food price hikes.
The comments by the Founder of the ruling National Democratic
Congress came weeks after the Ghana Statistical Service released fresh
findings which show a sharp rise in inflation figures.
The figures also showed that between March 2013 and March 2014,
Ghana’s year-on-year Producer Price Inflation (PPI) increased by 27.8%,
representing an increase in PPI by 0.7% points, compared to the 27.1%
rate recorded in February 2014.
Also, consumer prices, according to the GSS, accelerated for the
seventh consecutive month, in what experts have called the highest
inflation rate since February of 2010.
Again, from 14.0% in February 2014, Ghana’s year-on-year inflation
rate, as measured by the Consumer Price Index (CPI), leaped to 14.5% in
March 2014. The monthly change rate for March 2014 peaked at 0.9%
against the 1.1% recorded in February 2014.
The figures mean that the change in the general price levels was
14.5% over the one year period, from March 2013 to March 2014, while the
variation in the general price level increased by 0.5% between February
2014 and March 2014.
Ghana’s economy has been badly hit by a surge in foreign exchange
rates, with the national currency, the cedi, losing strength against
major currencies like the US dollar and the British Pound.
Although the Bank of Ghana introduced sweeping monetary measures some
three months ago in a desperate bid to arrest the free-fall of the
cedi, fresh reports say the cedi continues to fall daily – a development
that continues to fuel price increases locally.
Over the Weekend, Jerry Rawlings, waded somewhat into ongoing public
discussion about growing economic hardship in Ghana when he suggested
that food prices are moving out of the reach of many Ghanaians.
TUC demands wage rise
His comments came as Ghanaian workers mounted fresh pressure on the Mahama administration to increase wages.
“We cannot afford this high cost of living with the current wages and
salaries,” Kofi Asamoah, Secretary-General of the Trades Union Congress
(TUC), said on Saturday. “We want all negotiations on the minimum wage
and the base pay must finish before the May Day. We are sending a strong
signal out there”.
Mr. Asamoah’s comments drew a thunderous applause from a multitude of
workers who gathered in Tema, Ghana’s industrial capital, over the
weekend.
“Let us first see ourselves as workers,” the TUC boss told the
meeting, which was organised by the Tema District Council of Labour as
part of activities marking this year’s May Day, which will be celebrated
nationwide on May 1, 2014.
AFAG threatens street protests
Last week, pressure group, Alliance for Accountable Governance
(AFAG), issued a statement in which it threatened fresh street protests
after plans to introduce a new VAT policy that is set to hit banks in
Ghana.
“…We will hit the street to show to government that Ghanaians are
discontent with the NDC government’s economic management,” said AFAG –– a
group notorious for previous street protests over what it called
“harsh” social and economic conditions in Ghana.
“AFAG will use all legitimate means to resist the implementation of
this bank service tax. It is certainly not popular,” Thursday’s
statement said. “Ghana’s economy is in a failed state. We feel very
sorry for President John Mahama for supervising this mess. It is however
not surprising to Ghanaians to see President Mahama, his extended
family and cronies getting better off, as Ghanaians continue to wallow
in abject poverty”.
In February this year, President John Dramani Mahama downplayed the
extent of the economic challenges facing Ghana when he said, “…despite
the short-term challenges we face our economic fundamentals remain sound
and our midterm goals are bright.”
He told Parliament that Ghana’s economic prospects are ‘bright’.
“Growth continues to be robust at an estimated 7.4 percent last year and
we still retain our vision to accelerate and maintain GDP growth at
above 8 percent going forward,” he said.
Rawlings on Boko Haram
Back in Nigeria, former President Rawlings warned Nigeria that
military strategy alone cannot stop the insurgency being perpetrated by
the terror group, Boko Haram.
Speaking to The Vanguard newspaper, Rawlings pleaded that as Africa’s
most populous nation, Nigeria must not allow the International
community to meddle wither her internal affairs due to the prevailing
insecurity.
In the former Ghana Air Force pilot’s view, the war on terror would be won if all Nigerians work in unity.
Rawlings, who expressed regrets at the worsening security situation
in the oil-rich former British colony, said Nigerian authorities must
resist the temptation of seeking the assistance of foreign powers in
solving its problems.
“Nigeria’s political might is about 35 per cent in Africa and that is
why Nigeria must show the way in leading Africa,” Rawlings said. “The
way the world is going, Nigeria must not suffer vulnerability or others
will take advantage of the problem”.
Rawlings, till date Ghana’s longest serving leader, first came to
power through a bloody military coup by junior officers of the Ghana
Armed Forces in June 1979.
He is on recorded as having variously defended the coup –– which
later saw the execution of eight senior military officers, including
three previous Heads of State –– as a necessary evil triggered by
widespread corruption among the ruling class, as well as severe economic
hardship in the former British Colony in the 1970s.
In 1983, Mr. Rawlings briefly handed over power to Dr. Hilla Limann, a
man elected by popular elections that year. Some two years later,
Rawlings returned to power after overthrowing Dr. Limann through a
bloodless coup.
In 1993, Rawlings became the first President of Ghana’s Fourth
Republic after democratic elections. He went on to win re-election in
1996. In January 2001, Rawlings stepped down as President in line with
Ghana’s constitution after two terms in office.
Credit: Richard Dela Sky /Citifmonline
No comments:
Post a Comment