Good policies define economic performance
An economist, Dr John Gartchie Gatsi, says the incoming government must move straight to work and not assume the lame posture that ‘everything has been destroyed and they need time to restore them.’
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He said the new government would have a relatively stable economy to build on, as the hard decisions of the past two years such as a enhanced debt and fiscal management strategies had started to yield modest results, with increased outcomes expected this year.
“The orientation of the new government is equally important. The economy is not ready for excuses, blame game as that does not allow any government to settle down to work. The new government should be ready to build on and not to assume the posture that everything is destroyed and they are starting afresh,” Dr Gatsi stressed said.
Speaking in an interview with the GRAPHIC BUSINESS, Dr Gatsi suggested that one of the first things was for the Nana Akufo-Addo led government should clearly state its intentions of whether to continue existing government projects and programmes or it would start new ones.
An important position to be known of the incoming government is about the International Monetary Fund (IMF) programme with the country.
Policy formulation
He advised the new government to craft sound economic and social policies to serve as a blueprint for its administration to meet the hopes and expectations of Ghanaians.
“The policies of the new government should recognise many gains recorded in fiscal management, reforms in the energy sector and adherence to the rules on stability of contracts in the petroleum sector,” Dr Gatsi said in an interview.
Commenting on the short to medium-term prospects of the economy, Dr Gatsi, who is also a lecturer at the University of Cape Coast, said the medium-term economic outlook had already been defined in the home-grown policy framework which placed a lot of prospects in 2017 and 2018.
Already, the policy implementations have ensured some improved fiscal and debt management outcomes which were expected to be scaled up between this year and next year.
“Economic outlook of a country can only be based on concrete and comprehensive policies which we are yet to know. It can also be observed through specific policies put in place to either continue existing programmes and projects or to discontinue them,” he stated.
Promised reforms
Currently, one of the targets of the IMF programme is for the country to increase revenue mobilisation, but this flies in the face of promises by the incoming government to drastically reduce taxes.
However, Dr Gatsi believes that the IMF programme could not be overly renegotiated as some people were already calling for and that could place a limitation on the execution of many of the reforms.
One district, one factory
The economist said although it was possible for the new government to establish some selected and strategic factories, the one district one factory would not be an easy goal to attain.
“It is impossible to employ all Ghanaians willing to work as promised. But an inclusive and well-structured employment strategy to progressively employ all Ghanaians will be a welcome news,” he said.
Job creation
Dr Gatsi said the job creation agenda should include any Ghanaian with valid contracts with any state institution, as they were all serving the good course of the country.
He said termination of contracts by Ghanaians cooking under the School Feeding Programme, for instance, to be replaced by people close to the new government was not a healthy idea that should be entertained.
“Those whose contracts have ended should leave in peace and the new government should quickly learn to work with any Ghanaian, provided they have valid contracts,” he advised.
