KB Asante: Voice From Afar column
Are we any wise?
The pattern has been set by the addresses of former Presidents and the State of the Nation Address has become an exposition of what good the government has done and what it will do to make life much better for everyone.
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Ghanaians are cajoled to be happy with a middle-income status in the comity of nations and to expect unco-ordinated government efforts to improve their living conditions. No attempt is made to make the people realise that they have some responsibility for national progress and that the present state of the nation is unacceptable, considering the abundance of natural resources and human capacity.
President Mahama’s State of the Nation Address was a clever one. He identified the nagging problems (these days we call them challenges and not problems) which make the state of the nation disturbing but did not make clear the harsh measures necessary.
Furthermore, he did not ask Ghanaians to be angry with themselves and forswear the foolish ways of seeking happiness without work and of preference for practically anything foreign, especially foreign products from the countries in which they yearn to be.
President Mahama decried ‘the spiralling government wage bill, revenue shortfalls and the huge subsidies on petroleum products and utilities’. He said the net effect of all this was an increase in the budget deficit to about 12 per cent inflation above 13 per cent and an increase in interest rates and domestic debt. This is a serious indictment on financial management.
It is responsible for the serious economic difficulties confronting Ghanaians. ‘Dollarisation’ is not the problem. It is a symptom. The falling cedi is not the problem. It is an indication of a tottering economy. The President, as party leader, glossed over the real problem.
President Mahama observed that confidence in the economy has sagged and hedged on the dollar. He revealed that forex holdings on behalf of business and individuals amounted to $3 billion. He rightly connected the loss of confidence in the cedi to the quotation in dollars of prices of hotel rooms and of goods in some shops. Surely the answer to the situation is not to ban the use of dollars but to deal with the fundamental problems which have engulfed the economy.
It was good to know that the President had asked the National Development Planning Commission to come up with a plan to deal with the fundamentals which weaken the economy.
This should have been done long ago. With P.V. Obeng in charge of the Commission, I am sure, at least, an interim overall plan has been drawn up. Are the ministers and others in charge of economic and allied issues conforming to the plan or strategy? Or has any interim plan or strategy become one of those documents which are hailed, approved and forgotten? It requires discipline to conform to a plan. We Ghanaians lack this quality. We like to be our own boss. We do not like a planner or co-ordinator breathing down our necks.
Observers may recall the establishment of a Chief Minister or co-ordinator in President Kufuor’s early days as President. It appeared his ministers resented the discipline imposed by J.H. Mensah, the Chief Minister. That appointment was naturally rescinded. But we cannot have amicable solution to all problems. Leadership must assert itself and demand obedience to plans.
It was reassuring that the President mentioned measures to improve production and reduce imports. They should be seriously implemented and soonest. They may be bitter medicine for many. But bitter medicines must be drunk before some diseases are cured, as the President reminded the nation.
It is interesting that the free senior high schooling mentioned by the President hit the headlines and is a major topic for discussion. It appears that the Free Senior High School promised by the NPP during the last election was popular and the President wanted to jump on the popular wagon. That part of the address is being widely discussed. And it appears many welcome the proposal.
But can we afford it? Should it even be mentioned in a State of the Nation Address which paints a dire picture of the economy and future prospects? President Mahama presented the grim picture so cleverly that many did not appreciate the implications.
The future does not look bright. It will not improve much if we behave the way we do. We the people must accept our responsibility. Parents not so long ago felt it their duty to pay for the education of their children. They tightened their belt to discharge their responsibilities. Parents should perfprm similarly today, if necessary. If for some unavoidable cause some cannot do this duty, the State should step in and not allow students and children to suffer. But we the people should discharge our responsibilities. Personally, I am in favour of free education at all levels.
But this should be done when the economy can afford it. And the economy should be run to afford it. If it is done prematurely it assists economic decline and real education is impeded. I believe the problem about education is not primarily that of money. Ghana spends a high proportion of her GDP on education. The main problem about educations is not one of fees but management of the educational system.
The State of the Nation Address is an opportunity to tell us of the blood, toil and sweat we must face to reverse the dangerous economic downturn. Fiddling with regulations about the dollar will not help much. We should be harangued to help resolve the fundamental issues even if they hurt. The President should show the way. The future is in our hands and we can do it.