A Troubled Economy

Nothing perhaps sums up the state of Ghana’s economic and governance travails than the recent remarks by Dr. Mahamudu Bawumia.

His thoughts on the economy have always spawned bitter and polemic reactions from the ruling NDC in a manner which blurs the essence of the observations.

It is to be expected that this too would not be an exception. When the argument is lost, going for the body is what such persons believe in and they would live up to their ugly standards, believe us.

Be that as it may, matters about economic management, such as the sciences, are verifiable issues beyond the realms of propaganda.

When economic untruths are, therefore, garnished with propaganda and scattered on the political plane, the outcome cannot add up and would soon be exposed for what they are worth.

Even the uninitiated to the complex world of macroeconomics and its confusing figures would appreciate the pangs of the downward trend of the economy we are suffering, especially in the country, in the past few months.

The observations of Dr. Bawumia, although bitter, for which policymakers would rather they were not made public, are verifiable facts which we continue to ignore at the peril of the economy whose already pathetic state calls for immediate attention.

The recent petroleum products price hikes are doubtlessly a knee-jerk response to the negative fall-outs from the bad economic management regime we have gone through before and after the elections.

The Finance and Economic Planning Minister’s observations about what informed the increase in the price of the various fuels corroborate somewhat the thoughts of Dr. Bawumia. As to whether the price hikes can yield any meaningful dividend is anybody’s conjecture.

The fiscal figures, as posted by Dr. Bawumia, are not only scary but reflect a confused economic management regime which is set to continue, given the mindset of those at the helm and their state of helplessness.

The data coming in on the economy, as he pointed out, suggests that public finances are out of control and the economy is in trouble.

If this observation does not prompt serious thoughts about how to reverse the situation, but rather how to pour invectives on the source of the observations, then we are not yet ready to step out of the doldrums.

For those who do not agree with such observations, their answers as to whether the whopping budget deficit of GH¢8.7 billion at the end of 2012, representing 12.1 percent of the Gross Domestic Product (GDP), is not the highest in the country’s history and whether this is not a fall-out from reckless management of the economy, should provide a useful food for thought.

If this deficit figure excludes financial commitments, such as payments to contractors and other service providers, then the level of the challenge could be more mind-boggling.

We are dismayed that the so-called “unprecedented economic achievements”, the result of the delay in confronting critical challenges of the economy and resort to domestic and international borrowing, are being touted as success story.

Source: Editorial/Daily Guide