KB Asante: Voice From Afar column
Mood of despair retards improvement in the economy
Many have gloomy forebodings about the economy.
I share many of their concerns and fears. But on sober reflection I think the economy is not that bad and that with a few bold steps we can turn the corner even in my lifetime!
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I was, therefore, glad when I read the Graphic headline of July 10
‘Economic Prospects High’
I, however, became highly disappointed when I read the full story. The optimism appeared based on a claim by the Governor of the Bank of Ghana, Dr Henry Kofi Wampah, that
‘In spite of exchange rate pressures and a decline in major commodity prices, mid-term economic prospects are high’.
And the happy expectation appeared based on ‘inflows of more than US$3 billion from the sale of Eurobond this year and receipts from the annual Cocoa Syndicate loan to shore up its reserves in a bid to stem the persistent fiscal and exchange rate pressures’.
I remember taking part in this annual exercise some years ago. How then will this normal procedure deal with the present extraordinary situation? Will it amuse or impress the business community?
Now, Dr Wampah is very learned in his field and perhaps I have got it all wrong or do not fully appreciate modern financial practices. It is also possible that the information was not properly conveyed. And this brings me to the major issue of dissemination of information. Our President is an expert in the field of information and he should not find it difficult to stop the present incoherence and confusion in the transmission of information. Public confidence in the government machinery is needed if we are to overcome the present economic and social malaise.
Football and the performance of the Black Stars are at present of major interest to many Ghanaians. Therefore I will give an example in this field to bring home how many have been misled or confused by conflicting official information.
The Ghanaian Times of July 4 carried a headline “There was no tax on $100,000’.
The paper revealed that ‘Ghana World Cup players did not pay US$17,000 out of the US$100,000 appearance fees as taxes to the Brazilian government’”.
The paper continued that:
“There had been reports that the money was being deducted by the Brazilian taxmen after the US$3 million was airlifted to the team in Brazil a day before playing Portugal in their final match.”
‘A member of the Ministry of Youth and Sports World Cup, Committee, Kwadwo Adu Asare, had gone on record to confirm the news”.
“But the Ghana Football Association President had denied that all bonuses and appearance fees paid to players and officials were subject to tax and that the taxes are paid whether in Ghana or elsewhere”. I would not bore readers with other explanations or details given.
But after reading the statements and information releases about the dollar airlift saga and taxes, I DID NOT KNOW WHAT HAPPENED! Admittedly there are clever Ghanaians who would understand it all. But the likes of me would be confused. And if the information is to persuade us to gird up our loins, help solve the economic and social problems and make Ghana great we would be suspicious of the intentions of the authorities.
Official information delivery is uncoordinated and not well-presented. It often does not link pieces together to present a picture to inspire people with confidence. For example, bringing cement cake from other lands to crush to make suitable cement may help us to build more houses in a few months. But will that solve the housing problem?
A friend who is not normally interested in national issues visited me in the morning when he had just read about the President cutting the sod to begin production of cement by the Addoha group of Morocco. His first question was why we should not produce “burnt bricks and tiles like those which adorn your yard?” He continued. “Why did we close down the brick and tile factories on the Kasoa road, Alajo and Prampram? Would not such factories give jobs to the unemployed youth and save us the foreign exchange with which we bring other peoples’ caked bricks to crush as cement?”
Contrary to our normal general discussion we talked a lot about social and economic policies. Most of my friend’s remarks were negative.
It was clear to me that his attitude was due to badly presented information. We need cement immediately but we also need to burn our own bricks and in the long run that will have a better effect on the economy. Those in charge of government should give holistic information flowing from a vision, plan and strategy to house the people. The economic prospects will then be truly high and Ghanaians will confidently work for a better future. Those who give official information should know what they talk about.
