Development Economist Dr. Michael Ayamga Adongo has said, has maintained that when cedi depreciated under President Mills and Mahama, there was more external confidence in the economy than NPP Akufo-Addo’s administration
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When the Cedi depreciated under Mills & Mahama, there was external confidence in the economy. We could walk into the capital markets to borrow at competitive rates because Ghana was not rated in the Cs with negative outlook.
Investors were willing and investing in the economy. In fact, the depreciation occurred because oil companies and multinationals were demanding dollars to set up their production.
Such PRODUCTIVITY-TRIGGERED DEPRECIATION OF THE CEDI WAS GOOD OMEN AS IT USHERED IN THE FIRST DOUBLE DIGIT GROWTH OF THE ECONOMY IN RECENT HISTORY.
At that time, government was not broke and seeking to directly withdraw money from people’s wallets. We had not used our natural resources to collateralize loans.
We had not exceeded the disaster threshold of 77% debt to GDP ratio. Above all, there was social justice. Young men and women in our Universities had hope. Hope that they had decent chances at landing jobs regardless of his surnames and political connection.
Today we have the exact opposite. The Cedi is depreciating because we have depleted our resources and owe so much. The Cedi is depreciating because the outlook of our economy is negative. The depreciation we see with the Cedi today is not caused by the usual cyclical dollar demand by merchants to stock for Christmas or at the end of the financial year when multi-nationals are repatriating profits earned in Cedi.
In the last four years, the good management of previous governments made it possible for this government to go to the capital market, borrow and use the dollars to shore up the Cedi and then go about tooting the titles of members of their economic team. The least said about social justice and equity the better. Today young people are made to spend their savings on forms and queue for weeks in search of jobs that have already been distributed by the ruling elite to their families, friends, wives and girlfriends.
As my Senior brother Prof. Raymond Atuguba graciously said, “Ghana is broke”. Graciously because we are not just broke. Ghana is broke with a bad reputation so she can’t borrow.
There is a reason to worry. There is reason to lose sleep. Thanks to the crack economic team.
Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen
