President John Mahama has vowed to implement policies that would turn the economic fortunes of the country around.
President Mahama was speaking at this year’s May Day celebrations at the Independence Square in Accra.
Acknowledging that the country’s economy was challenged, he said it was a fall-out from Ghana’s sudden attainment of middle income status in 2010 - a feat achieved 10 years earlier than projected.
According to the President, Ghana became a middle income country when all of the "institutional prerequisites" befitting of that new status had not been put in place.
He said many of the challenges facing the economy were as a result of “an apparent disconnect between our new found middle income consumption habit and our low income productive capacity”.
President Mahama, however, gave an assurance that ‘home-grown’ strategies were already being implemented to boost economic growth in the country.
Touching on concerns that some of his administration’s economic polices were harsh and had made life difficult for Ghanaians, the President said: “I assure you my countrymen and women, that these measures are achieving the desired effect and the economy is gradually responding.”
“This year is a turn-around year for Ghana and I am positive that the Ghanaian economy will show strong signs of recovery by the end of this fiscal year,” he added
President Mahama pledged government’s commitment to fighting corruption, which he identified as a major development bane of the country.
He said his administration had established that corruption was pervasive in the country because institutions and systems meant to check it were weak.
He said the government would strengthen the relevant institutions to enable them tackle what he described as the “scourge of theft” in society.
“We are committed to plugging loopholes in our revenue systems and will carry out the reforms in our revenue administration to ensure sustainable economic growth.
“In the next few will initiate a massive payroll audit with the view to eliminating the pervasive ghost names and ensuring that these ghosts die a permanent death and resurrect no more,” he stated.
On workers’ demands for wage increases, the President expressed regret that negotiations on the national minimum wage could not be concluded before the May Day celebration.
He, however, underscored the need for the demands to be examined critically so that wage increases do not derail Ghana’s economic progress.
He said: "Another wage overrun as we experienced last year will make it difficult for us to meet our deficit target and bring the micro-economy back on track.
“It will fuel inflation and push interest rates higher; this will create an adverse environment for the growth of business and will lead to the creation of fewer jobs to absorb the growing numbers of our graduating youth."
Earlier, Organised Labour called on the government to abandon what it described as the IMF-sponsored neoliberal economic framework, which it said had undermined the development of the nation.
Organised Labour made this known in a speech delivered on its behalf by the General Secretary of the Trades Union Congress (TUC), Mr Kofi Asamoah.
Organised Labour comprises the Trades Union Congress (TUC), Ghana National Association of Teachers (GNAT), National Association of Graduate Teachers (NAGRAT), Polytechnic Teachers Association of Ghana (POTAG), Industrial and Commercial Service Union (ICU) and Judicial Services Staff Assiociation of Ghana (JUSAG).
The union called for a “paradigm shift” away from Ghana’s current “ultra-market and neoliberal economic policies” to policies that “place Ghanaians and their welfare at the centre of economic policies”.
It urged the government to implement relevant rules and regulations to address market failures, and strengthen state institutions to lead Ghana’s economic development.
Organised Labour also cautioned the government against signing the Economic Partnership Agreement (EPA) in its current form.
In response President Mahama said: President Mahama said: "Government is taking all views and concerns of all stakeholders including labour, consumers, and exporters into considerations. Those views and considerations will absolutely inform any decision that we eventually take which I assure you will be in the best interest of Ghana."
The President went on to commend Ghanaians workers, whose commitment and service, he said, had caused Ghana to be heralded as the shining star of Africa.
