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Govt Lying About Economy -Economist

Re: Govt Lying About Economy -Economist
Author: Ya Man
Date: 03-14 20:55 

Can Dr. Thompson or some one from Ghanaweb post the full text on the web. I will also like to invite the political heads of Economic Planning and Finance as well as anyone on the long list of government ministers who are nurturning presidential ambitions to come to the fore and challenge the points raised by the learned Prof.
Re: Govt Lying About Economy -Economist
Author: Kofi Bamfo
Date: 03-14 20:34 

I believe those who dont see Dr Thompson's arguments just dont understand basic economics. Take a micro economics class and understand how things work in an economy.
Comparative Advantage
Author: Francis Kojo Sam
Date: 03-14 20:19 

Price containment as an economic policy is good for the country. To achieve this the collective energies and mindset of the nation has to be aligned with this policy.
Dr. Thompson's argue regarding focusing on non-traditional exports is right conceptually, but will not hold in reality.
The reasons why this focus will not work is because we do not have the infastructure to support such non-traditional export or the ability to draw investment capital for them.
We can only export the abundant factor which we have a comparative advantage in producing. Specialization in traditional exports should lead to the use of Ghana's abundant factors intensively. This will result in incremental returns to the traditional export sector. It will creating employment in all related sectors and help increasing per capita income. Eventually, we will be able to move more to non-raditional exports once we have the platform to support that.
Re: Govt Lying About Economy -Economist
Author: Asonaba, Hackney, London
Date: 03-14 19:23 

Illiteracy is a disease and to be concious of our ignorance is a great step.These have been manifested by many authors who condemned Dr Nii Moi Thompson, simply because he has dared to expose flaws in a national budget.
That is aready clear
Author: Kwame
Date: 03-14 18:19 

This is no more news. it is already clear that, this government did not improve the economy since it came to power. It rather rely on what NDC left.
RE: Govt Lying About Economy -Economist
Author: KWAME
Date: 03-14 18:11 

Dr. Nii Moi Thompson is absolute right Kufour and his corrupt supporters are just telling us a pack of lies double lies. What Ghana need is small government and increase in health and education. Ghanaians always talk big with nothing to show for with worthless qualifications attached to their names. The ministry of women affairs should be abolished asap. It is total waste of tax payers money. And finally Kufour and his corrupt officials should stop wasting tax payers money by staying in five star hotels when they travel abroad.
Indeed this is despicable!
Author: Busumuru Odumgya Brempong
Date: 03-14 17:07

Statue of Kwame Nkruma, the first prime minister of independent Ghana, following the military coup of 1966, which led to his ouster and exile.

Why was Kwame Nkrumah's statue destroyed in 1966?

What led to the coup that toppled the first independent ruler of the first independent nation of sub-Saharan Africa?

Fiscal and Monetary Policies

Nkrumah left Ghana no better off than when he started. GDP per capita in real terms, despite all its well known limitations, tells the story clearly and simply.

So for all those who have eyes and ears to read and understand, and with brains to analyse, this is Kwame Nkruma's political mismanagement autopsy and a post-mortem report of his misrule.

By 1966, GDP per capita was no greater than in 1951. This was the outcome of a destructive set of economic policies. The primary villain was an overly ambitious government expenditure program that pushed the budget deficit to over 6% of GDP.

For this reason, let us all begin our look at Nkrumah?s economic policies by examining the sources of excess aggregate demand.

The colonial legislature had no power to pursue independent economic policies.

Before the introduction of internal self government, taxation, mostly on foreign trade, including cocoa, was set by the British colonial administration. Similarly, government expenditure budgets were set by the colonial governors, and strict financial controls ensured that budgets were not overspent.

The currency was the pound, issued by the West African Currency Board, in a typical currency board arrangement, with a fixed exchange rate against the pound sterling. Even when internal self government was granted in 1951, the finance ministry was not turned over to an African: it was reserved for a European.

Source: International Financial Statistics

Nkrumah gradually stripped away these constraints.

To see the consequences, let us look first at various indicators of excess demand. Then turn to examine the sources of that excess demand.

The most common indicator of excess demand is the presence of inflation. There are various measures of inflation, the most widely cited measure being the rate of change of consumer prices.This uses weights that reflect the expenditure patterns of the typical family.

Another common measure uses the GDP deflator, which reflects prices of the goods and services that are produced in the domestic economy. Both tend to move together, but because consumer price indexes exclude items that may be a significant part of the domestic output, the CPI measure is usually more exaggerated in its movements.

From the perspective of the 1970s and early 1980s, inflation under Nkrumah was not substantial. However, from the perspective of the time and in view of the fixed exchange rate, it was significant. Further, both measures of excess demand pressure were accelerating.

By 1965, Nkrumah?s last year in power, CPI inflation had exceeded 20%

Source: International Financial Statistics

Yet, it is possible to have excess demand without inflation if the excess demand is being met by supply from outside the domestic economy. Given the possibility that the excess demand may show itself in different ways at different times, it is necessary to look at indicators of both the external account and internal prices to identify the presence or absence of excess demand.

In light of this, we can highlight on the exports minus imports of goods and services, relative to GDP. This reveals that during the first half of the 1960s a significant deficit was run.

The cumulative effect of the deficits was to draw down the foreign assets of the banking system from a peak in 1955 of over 40% of GDP to zero at the end of 1965.

In addition to drawing down substantial foreign exchange reserves, Nkrumah incurred a significant foreign debt, in part for major development projects, but in part as suppliers? credits financing current purchases. Thus, the ability to run a current account deficit by drawing down reserves and taking on short-term debt enabled Nkrumah's government to keep inflation from becoming more serious in the face of a substantial excess demand.

It remains to identify the sources of that excess demand. Potential sources of excess demand include, of course, the government budget, and loose monetary policy. It is clear that these were indeed the major influences at work in Ghana under Nkrumah?s rule.

Government expenditure grew rapidly, even from the earliest days of internal self government. Although various devices to generate more revenues were implemented, by 1960 a significant and rising budget deficit was left to be financed. Further, the share of GDP taken by government expenditure was rising .

In the early Nkrumah years some of the fiscal deficit was financed from foreign sources, including drawing down the foreign exchange reserves and debt, as noted above. A substantial portion was left to be financed from the domestic monetary system.

Initially this involved simply drawing down government balances in the banking system, but by 1961 those balances were exhausted. As a result, government began to issue Treasury Bills in 1960, and in the next year became a net borrower from the banking system.

Credit from the banking system to government increased rapidly, to the point that at the end of 1965 (shortly before Nkrumah was removed from office) it was 12% of GDP .

At independence the Bank of Ghana was established as the central bank, and the Ghanaian pound created. Monetary policy became de jure independent of the colonial arrangements in 1958 when the Bank of Ghana took over both the issue of currency and the foreign exchange reserves from the West African Currency Board.

Ghana remained part of the Sterling area, which meant that :

imports from within the Sterling area did not require prior authorization;

payments inside the area for invisibles were freely made;

surrender of proceeds from exports to the rest of the area was not required;

and there were no restrictions on capital account payments with the Sterling area.

Given the fixed exchange rate and foreign exchange reserves available to draw down, two important features followed from the absence of exchange controls vis-a-vis the rest of the Sterling area.

First, the automatic monetary adjustment mechanism was at work: changes in the foreign assets were reflected in changes in the domestic money stock . This kept growth of the money stock within bounds .

Second, Ghana?s price level was directly linked to the price level in the Sterling area. Together, these features of the policy regime meant that inflation was negligible, and that money growth was on average only slightly greater than the rate of growth of nominal GDP, thus allowing for a modest rate of monetization.

The anticipation of exchange controls, of course, contributed to the acceleration of the hemorrhage of the reserves.

The nascent excess demand could be vented on imports only as long as there were foreign exchange reserves. However, a sea change occurred in 1961. After many months of accelerating decline of foreign exchange reserves. In July the exchange control net was drawn around Ghana rather than the Sterling area, and in December of that year import licencing was introduced.

In that same year, government exhausted its local currency bank balances, and started borrowing from the banking system. This combination had several related effects on the macro economy.

First, monetary policy now became de facto independent of the sterling area. Excess issue of money would no longer result in capital movement.

Second, the consequence of excess issue of money would now be inflation.

Third, the import licencing was intended not only to restrict imports, but also to promote import-substitution, industrialization, and geographic diversification of trade towards East-bloc countries.

Fourth, as the excess demand for foreign exchange became larger and larger, making the rents to recipients of licences correspondingly larger, the inevitable corruption in the issue of licences emerged.

The first of these effects shows up in the monetary growth rate . The three year moving average rate of money growth exceeded 10% in the first half of the 1960s.

The initial effect of this was to increase the Money/GDP ratio to over 15%. However, as has happened the world over, excess money balances were spent, and with the economy now closed, the second effect emerged: CPI inflation rose to exceed 20% by 1965 .

The Bank of Ghana increased the discount rate by half of one per cent in 1961 as part of the package associated with the introduction of exchange controls. But with inflation accelerating, the real interest rate became sharply negative . Both the private sector and the growing band of state-owned enterprises now had the incentive to increase their borrowing from the banking system, and the favoured ones with access to credit responded accordingly.

An inflation tax arises from the decline in the real value of non-interest bearing money held by the public. The tax rate, as a proportion of money balances, is the inflation rate divided by 1 + the inflation rate. It is also useful to calculate the amount of the tax in value terms, and express that relative to GDP.

This trend was exacerbated by official policy favouring the state-owned Ghana Commercial Bank (GCB): all state-owned enterprises were expected to bank with GCB, and in 1961 financing of the marketing of the cocoa crop was taken over by the GCB.

In addition, the National Investment Bank was set up in 1963, three quarters owned by government, which became a loan window to funnel credit to favoured sectors.

With the monetary system insulated from the rest of the world by exchange controls, it was possible to collect an inflation tax.

From an initial situation of no significant inflation tax, by Nkrumah?s last year it reached over 3.4% of GDP. The public responds to any tax by reducing its exposure to the tax -- in this case by reducing its holdings of money. Naturally this didn?t happen immediately, and the incidence varied across agents in the economy. But respond the public did.

Despite the fact that money growth and inflation were both sharply reduced following Nkrumah?s overthrow, and remained below 10% through the end of the Busia government, the public?s holdings of money steadily declined until the next round of accelerating money supply and subsequent inflation .

The decline in foreign exchange reserves understated the extent to which Ghana was living beyond its means. A significant part of the import splurge had been financed by taking on short-term debt. Two thirds of the debt outstanding in early 1966 was suppliers' credits and payments arrears.

Cost information is from Killick (1978), p. 249.

Not all of the debt was inappropriate. About 20% of the debt was long-tem, some of which had been invested in high return projects. Among the successful projects must be counted the Volta dam.

It?s purpose was to generate large volumes of cheap electricity to fuel Ghana?s industrialization. The principal anchor was an aluminum smelter, but Nkrumah?s ambitious industrialization plans anticipated many other uses for the electricity.

The dam itself cost the equivalent of over 60% of a year?s merchandise export earnings, and was financed in part by Ghana itself (41%), the World Bank (34%), and loans from the US and the UK governments (25%).

The presence of the World Bank proved to be an important agent of restraint on discretionary action by Ghana, which ensured the effective running of the project while the Bank?s conditions remained in force.

Nkrumah?s legacy also included a sizable state-owned enterprise sector. The share of value added in the state-owned sector reached one quarter of GDP in the mid 1960s. The share of employment was even higher, largely because some state-owned activities were generating low, and in some case even negative value added -- i.e., a value of output less than the value of purchased inputs.

Killick (1978) reports several measures of relative inefficiency of the state- owned enterprises, which indicate low productivity, low profitability, and considerable overstaffing. (thus socialist system of economic management).

Exchange Rate Policy

The Nkrumist rhetoric implicitly assumed that all demand and supply elasticities were close to zero, and hence that relative prices did not matter. Consequently, there was virtually no policy attention paid to relative prices in general, and to the exchange rate in particular. The neglect of exchange rate policy was evidently clear.

From 1956 through 1960 there was a modest fall in the real price of foreign exchange (real appreciation of the currency), as excess demand was being met by drawing down foreign exchange reserves, keeping Ghana's inflation only slightly greater than that of the major industrial countries. With the tightening of exchange controls and import licencing in 1961, Ghanaian inflation accelerated, while the exchange rate remained fixed. This yielded a sharp real appreciation of the currency.

The changes in incentives due to real appreciation of the currency were substantial.

On the export side, even before allowing for increases in taxes on various exports, by 1965 the real exchange rate was nearly 50% less than at independence. The response of exports was predictable: exports dropped from about 30% of GDP at independence to less than 18% in 1965 .

The fact that a part of this effect was due to terms of trade deterioration may have obscured the importance of the real exchange rate for export earnings. Whatever the reason for the failure of policy makers to recognize the source of the problem, the deteriorating export performance was serious.

( Leith 1971.)

Equally important incentive effects were emerging on the import side. With the volume and composition of imports controlled by a system of import licencing, large rents attributable to those licences emerged. Ghanaians learned quickly that rent-seeking had become far more rewarding than any directly productive activity.

Sometimes the rent-seeking consisted simply of investing in favoured import-substitution activities, where inputs could be imported cheaply and competing imports were excluded. More seriously for the long-term, the rent-seeking also took the form of corruption, a pattern which was to be repeated again and again.

Source: International Financial Statistics

The exchange rate-cum-import licencing policy contributed to the fiscal deterioration, which was itself causing the real exchange rate deterioration. With the volume of imports/GDP dropping (because the export/GDP ratio was falling and no further financing was available), and because the composition of imports was increasingly biased towards low duty rated items which were

In different times the payment was made in currency and at other times by cheque.

In either case, as a recipient of a large annual cash payment the producer was particularly vulnerable to the inflation tax deemed ?essentials? and therefore worthy of lower rates, import duties started to shrink, not only relative to GDP, but also relative to other government revenue sources.

Cocoa Policy

Nkrumah's government had a highly ambivalent attitude towards cocoa. The peasant farmers, responsible for the vast bulk of production, were not part of the urban-based statist constituency that had put, and kept, Nkrumah in office.

The world market was largely dominated by multi-nationals, which Nkrumah deeply mistrusted, and the world price exhibited a high variance.

Kwame Nkruma's CPP Government, therefore, had many reasons to ignore the cocoa interests in its policy formulation. One being that it is largely produced in his enemy Akan areas mostly by the Ashantis.

Yet in 1957 cocoa exports were both the most important export and the largest single source of government revenues. Government could not, therefore, afford to mis-play its cocoa policy: but it did. All because he hate the Ashantis and wanted to see them economically destroyed.

The peasant farmers are located in several parts of the country, but largely in the inland regions beyond the costal plain: Ashanti, Brong-Ahafo, Eastern, and Western regions, with a smaller volume coming from the Central region, but not from the north.

Cocoa is a tree crop, which takes a number of years to mature. The pods are harvested, and preliminary processing in the form of fermentation and drying of the beans, is done in the immediate growing area. The dried beans are generally carried in headloads from the farm to the buying stations located on a feeder road or rail line, where a producer price that varies by grade but which is usually fixed for the crop year, is credited to the owner.

From there the beans are shipped to the coast, and then overseas, with some diverted to local processing.

At the turn of the century Ghana accounted for about 1% of total world production of cocoa beans. Following a rapid expansion of production during the first two decades of the twentieth century, Ghana became the largest single producer in the world.

The 1920/21 crop year gave Ghana a 32% share, which grew slightly over the next two decades, and remained in the mid-30% range until the early 1960s.

( Amoah, Vols. 1, 1995, and 2, 1998, detail on the cocoa sector.)

The formal title of the Board changed over the years, and is now called the Cocoa Board. It was not until 1961 that the Nkrumah government established it as a single monopsony buyer at the local level.

It should be noted, nevertheless, that over the longer term, as smuggling channels to neighboring countries developed, sales to the CMB began to decline more rapidly than the harvest of cocoa pods.

The internal purchasing and external marketing of cocoa were handled by private firms prior to World War II.

With the war, the colonial government took over the purchase of cocoa and sold it to the British food ministry. In 1947 this was replaced by the Cocoa Marketing Board (CMB), which was given a monopsony position in purchase for export and monopoly in export marketing from the Gold Coast.

Initially the producer price paid by the CMB was determined by the world price less a modest tax, with profits paid to government. However, as time passed, the nominal producer price was fixed and kept at levels that yielded larger and larger shares to the CMB and government.

As Nkrumah took the reins of the internal self-government in the early 1950s, the world price was high by historical standards, due largely to the commodity price boom associated with the Korean war. This permitted government, through the CMB, to set a relatively high producer price, which encouraged a substantial expansion of Ghanaian capacity in the form of new plantings of trees.

As independence neared, world prices dropped, and so did the price paid by the CMB to producers. However, once trees have been planted, the short-run supply response to a real price fall is not large.

Consequently, sales to the CMB grew dramatically, doubling from the early 1950s to the early 1960s, even as the real price paid to producers was falling, equally dramatically.

Much to the dismay of Nkrumah, this also depressed world cocoa prices, for at that time Ghana had about one third of the world market.

Again, the interaction of the excess demand and the exchange rate policies acted to amplify the effect of another set of policies. In the cocoa case, the domestic inflation and the fixed nominal producer price accelerated the decline in the real producer price. The effect on production, and hence CMB purchases, was not immediate but, nevertheless, during Nkrumah?s later years purchases began their long decline, both in absolute volume, and share of world production.

Source: Cocoa Board, Accra

In addition, Ghana negotiated several bilateral trade pacts, mostly with other African and east-European countries. This helped Ghana to diversify modestly its cocoa export market, but mostly it simply created bilateral balances which Ghana found of little value in making its other external payments. The USSR got the cocoa, and Ghana got a ruble balance. (Russia man asisifuo ne Ndaadaafuo nso , ye Oman a, ye ne no di dwa ma no ye yie ?)

Sources: Amoah (1998) for share, International Financial Statistics for other.

The Nkrumah Legacy

The Nkrumah regime initiated the first failure ? to maintain macro balance ? and exacerbated the effects by fixing the nominal prices of foreign exchange and cocoa.

The returns to holders of money, and export-earning assets such as cocoa trees and mineral deposits were thus altered dramatically by the state. Even if those returns were subsequently restored to their initial rates, the response would be tempered by the knowledge of the risks which experience had demonstrated.

Kwame Nkruma also misapplied Ghana's resources for his own personal aggrandisement . The most unpleasant aspect of it was the use of the country's money for his sexual pleasures and satisfaction in Egypt. Madam Fatia and her community were the major winners of that wealth which the colonial government bequeathed to the former Gold Coast Country.

A useless person like this does not deserve to be remembered at all , let alone associating his name with a respectable University of Science and Technology in Kumasi.

Kwame Nkruma's name symbolizes terror, tyranny, oppression, economic challenge, power abuse, controversy, contradiction and African socialism which is why most Ashantis , Akans and other meaningful Ghanaians still find it very difficult to see his name appearing on their transcripts , certificates and academic degrees. They'll simply prefer saying "Tech" to avoid pronouncing the official name of that higher institution in Kumasi even if the present government still want to maintain that !

This is insult particularly to Ashantis . The Rawlings' P/NDC did that with intention to humilate them to revive the old wounds for its own political interest.

The University of Science and Technology in Kumasi is neither a communist nor a socialist institution , it is in a democratic Ghana and also in Ashanti territory, therefore, Kwame Nkruma's name must be reversed from it !

Kotobonku Osansani Kohwini Kwame Nkruma,

Okromfuor who stole Ghana's money and deposited it in Guinea.
CPP propaganda
Date: 03-14 17:04 

Dr Thompson told the CPP audience what they want to hear about their Nkrumah. This is the sort of stuff that was taught at the Kwame Nkrumah Ideological Institute. I should think Dr Thompson is a product of this institute and he did not disappoint. Why he chose to compare Ghana to South Korea beats my imagination when North Korea which continues to practice the kind of ideology known to Nkrumaist would have been more appropriate. I see his lecture as purely propaganda material designed to whip up moral in the dying CPP. For Dr Thompson to suggest that the rate of change in world oil prices have slowed since 2000 suggests to me that he has just landed on Earth from Mars. I know the average world oil price in 2000 was $20 a barrel. Now it averages $60 a barrel so what is he talking about?
This is absolutely bogus!
Author: Nana Ama Serwaa
Date: 03-14 16:56 

Do We Have A Kwame Nkrumah University?

I've no political intention whatsoever and it will be the last thing I will ever dream of. All we're asking for is true justice and freedom for our great Ashanti and Akan people.

I'm glad I wasn't born when that slave kwame nkruma was dictating senselessly and decieving innocent citizens of the country. Had it been dummies like you W?leiatse, weeforman and Robot alone I do not think we would have wasted our time and energy to bring this problem into focus.

Thanks to the almighty, I had my little JSS education from Ashanti and mission funded institutions.

Only easy prey and fickle minded people like some of you guys will be swayed by cheap political statements like this below.

Kwame Nkrumah 1967

African Socialism Revisited

National and Social Revolution

The term ?socialism? has become a necessity in the platform diction and political writings of African leaders. It is a term which unites us in the recognition that the restoration of Africa?s humanist and egalitarian principles of society calls for socialism. All of us, therefore, even though pursuing widely contrasting policies in the task of reconstructing our various nation-states, still use ?socialism? to describe our respective efforts.

?The question must therefore be faced: What real meaning does the term retain in the context of contemporary African politics?

I warned about this in my book Consciencism (London and New York, 1964, p. 105).

And yet, socialism in Africa today tends to lose its objective content in favour of a distracting terminology and in favour of a general confusion. Discussion centres more on the various conceivable types of socialism than upon the need for socialist development.

Some African political leaders and thinkers certainly use the term ?socialism? as it should in my opinion be used: to describe a complex of social purposes and the consequential social and economic policies, organisational patterns, state structure, and ideologies which can lead to the attainment of those purposes. For such leaders, the aim is to remold African society in the socialist direction; to reconsider African society in such a manner that the humanism of traditional African life re-asserts itself in a modern technical community.

Consequently, socialism in Africa introduces a new social synthesis in which modern technology is reconciled with human values, in which the advanced technical society is realised without the staggering social malefactions and deep schisms of capitalist industrial society. For true economic and social development cannot be promoted without the real socialisation of productive and distributive processes. Those African leaders who believe these principles are the socialists in Africa.

There are, however, other African political leaders and thinkers who use the term ?socialism? because they believe that socialism would, in the words of Chandler Morse, ?smooth the road to economic development?. It becomes necessary for them to employ the term in a ?charismatic effort to rally support? for policies that do not really promote economic and social development. Those African leaders who believe these principles are supposed to be the ?African socialists?.

It is interesting to recall that before the split in the Second International, Marxism was almost indistinguishable from social democracy. Indeed, the German Social Democratic Party was more or less the guardian of the doctrine of Marxism, and both Marx and Engels supported that Party. Lenin, too, became a member of the Social Democratic Party. After the break-up of the Second International, however, the meaning of the term ?social democracy? altered, and it became possible to draw a real distinction between socialism and social democracy. A similar situation has arisen in Africa. Some years ago, African political leaders and writers used the term ?African socialism? in order to label the concrete forms that socialism might assume in Africa. But the realities of the diverse and irreconcilable social, political, and economic policies being pursued by African states today have made the term ?African socialism? meaningless and irrelevant.

It appears to be much more closely associated with anthropology than with political economy.

?African socialism? has now come to acquire some of its greatest publicists in Europe and North America precisely because of its predominant anthropological charm.

Its foreign publicists include not only the surviving social democrats of Europe and North America, but other intellectuals and liberals who themselves are steeped in the ideology of social democracy.

It was no accident, let me add, that the 1962 Dakar Colloquium made such capital of ?African socialism"? but the uncertainties concerning the meaning and specific policies of ?African socialism? have led some of us to abandon the term because it fails to express its original meaning and because it tends to obscure our fundamental socialist commitment.

Today, the phrase ?African socialism? seems to espouse the view that the traditional African society was a classless society imbued with the spirit of humanism and to express a nostalgia for that spirit. Such a conception of socialism makes a fetish of the communal African society.

But an idyllic, African classless society (in which there were no rich and no poor) enjoying a drugged serenity is certainly a facile simplification; there is no historical or even anthropological evidence for any such society. I am afraid the realities of African society were somewhat more sordid.

All available evidence from the history of Africa up to the eve of the European colonisation, shows that African society was neither classless nor devoid of a social hierarchy. Feudalism existed in some parts of Africa before colonisation; and feudalism involves a deep and exploitative social stratification, founded on the ownership of land.

It must also be noted that slavery existed in Africa before European colonisation, although the earlier European contact gave slavery in Africa some of its most vicious characteristics.

The truth remains, however, that before colonisation, which became widespread in Africa only in the nineteenth century, Africans were prepared to sell, often for no more than thirty pieces of silver, fellow tribesmen and even members of the same ?extended family? and clan.

Colonialism deserves to be blamed for many evils in Africa, but surely it was not preceded by an African Golden Age or paradise.

A return to the pre-colonial African society is evidently not worthy of the ingenuity and efforts of our people.

All this notwithstanding, one could still argue that the basic organisation of many African societies in different periods of history manifested a certain communalism and that the philosophy and humanist purposes behind that organisation are worthy of recapture.

A community in which each saw his well-being in the welfare of the group certainly was praiseworthy, even if the manner in which the well-being of the group was pursued makes no contribution to our purposes.

Thus, what socialist thought in Africa must recapture is not the structure of the ?traditional African society? but its spirit, for the spirit of communalism is crystallised in its humanism and in its reconciliation of individual advancement with group welfare. Even If there is incomplete anthropological evidence to reconstruct the ?traditional African society? with accuracy, we can still recapture the rich human values of that society.

In short, an anthropological approach to the ? traditional African society? is too much unproven; but a philosophical approach stands on much firmer ground and makes generalisation feasible.

One predicament in the anthropological approach is that there is some disparity of views concerning the manifestations of the ?classlessness? of the ?traditional African society?. While some hold that the society was based on the equality of its members, others hold that it contained a hierarchy and division of labour in which the hierarchy ? and therefore power ? was founded on spiritual and democratic values..

Of course, no society can be founded on the equality of its members although societies are founded on egalitarianism, which is something quite different. Similarly, a classless society that at the same time rejoices in a hierarchy of power (as distinct from authority) must be accounted a marvel of socio-political finesse.

We know that the ?traditional African society? was founded on principles of egalitarianism.

In its actual workings, however, it had various shortcomings. Its humanist impulse, nevertheless, is something that continues to urge us towards our all-African socialist reconstruction.

We postulate each man to be an end in himself, not merely a means; and we accept the necessity of guaranteeing each man equal opportunities for his development. The implications of this for socio-political practice have to be worked out scientifically, and the necessary social and economic policies pursued with resolution. Any meaningful humanism must begin from egalitarianism and must lead to objectively chosen policies for safeguarding and sustaining egalitarianism. "Hence, socialism. Hence, also, scientific socialism." !

A further difficulty that arises from the anthropological approach to socialism, or ?African socialism?, is the glaring division between existing African societies and the communalistic society that was.

I warned in my book Consciencism that ?our society is not the old society, but a new society enlarged by Islamic and Euro-Christian influences?. This is a fact that any socio-economic policies must recognise and take into account. Yet the literature of ?African socialism? comes close to suggesting that today?s African societies are communalistic. The two societies are not coterminous; and such an equation cannot be supported by any attentive observation. It is true that this disparity is acknowledged in some of the literature of ?African socialism?; thus, my friend and colleague Julius Nyerere, in acknowledging the disequilibrium between what was and what is in terms of African societies, attributes the differences to the importations of European colonialism.

We know, of course, that the defeat of colonialism and even neo-colonialism will not result in the automatic disappearance of the imported patterns of thought and social organisation.

For those patterns have taken root, and are in varying degree sociological features of our contemporary society. Nor will a simple return to the communalistic society of ancient Africa offer a solution either.

To advocate a return, as it were, to the rock from which we were hewn is a charming thought, but we are faced with contemporary problems, which have arisen from political subjugation, economic exploitation, educational and social backwardness, increases in population, familiarity with the methods and products of industrialisation, modern agricultural techniques.

These ? as well as a host of other complexities ? can be resolved by no mere communalistic society, however sophisticated, and anyone who so advocates must be caught in insoluble dilemmas of the most excruciating kind. All available evidence from socio-political history discloses that such a return to a status quo ante is quite unexampled in the evolution of societies. There is, indeed, no theoretical or historical reason to indicate that it is at all possible.

When one society meets another, the observed historical trend is that acculturation results in a balance of forward movement, a movement in which each society assimilates certain useful attributes of the other. Social evolution is a dialectical process; it has ups and downs, but, on balance, it always represents an upward trend.

Islamic civilisation and European colonialism are both historical experiences of the traditional African society, profound experiences that have permanently changed the complexion of the traditional African society. They have introduced new values and a social, cultural, and economic organisation into African life. Modern African societies are not traditional, even if backward, and they are clearly in a state of socio-economic disequilibrium. They are in this state because they are not anchored to a steadying ideology.

The way out is certainly not to regurgitate all Islamic or Euro-colonial influences in a futile attempt to recreate a past that cannot be resurrected. The way out is only forward, forward to a higher and reconciled form of society, in which the quintessence of the human purposes of traditional African society reasserts itself in a modern context-forward, in short, to socialism, through policies that are scientifically devised and correctly applied.

The inevitability of a forward way out is felt by all; thus, Leopold Sedor Senghor, although favouring some kind of return to African communalism, insists that the refashioned African society must accommodate the ?positive contribution? of colonial rule, ?such as the economic and technical infrastructure and the French educational system?. The economic and technical infrastructure of even French colonialism and the French educational system must be assumed, though this can be shown to be imbued with a particular socio-political philosophy. This philosophy, as should be known, is not compatible with the philosophy underlying communalism, and the desired accommodation would prove only a socio-political mirage.

Senghor has, indeed, given an account of the nature of the return to Africa. His account is highlighted by statements using some of his own words: that the African is ?a field of pure sensation?; that he does not measure or observe, but ?lives? a situation; and that this way of acquiring ?knowledge? by confrontation and intuition is ?negro-African?; the acquisition of knowledge by reason, ?Hellenic?. In African Socialism [London and New York, 1964, pp.72-3], he proposes

?that we consider the Negro-African as he faces the Other:

God, man, animal, tree or pebble, natural or social phenomenon. In contrast to the classic European, the Negro-African does not draw a line between himself and the object, he does not hold it at a distance, nor does he merely look at it and analyse it.

After holding it at a distance, after scanning it without analysing it, he takes it vibrant in his hands, careful not to kill or fix it. He touches it, feels it, smells it.

The Negro-African is like one of those Third Day Worms, a pure field of sensations...

Thus the Negro-African sympathises, abandons his personality to become identified with the Other, dies to be reborn in the Other. He does not assimilate; he is assimilated. He lives a common life with the Other; he lives in a symbiosis.?

It is clear that socialism cannot be founded on this kind of metaphysics of knowledge.

To be sure, there is a connection between communalism and socialism. Socialism stands to communalism as capitalism stands to slavery.

In socialism, the principles underlying communalism are given expression in modern circumstances. Thus, whereas communalism in a non-technical society can be laissez-faire, in a technical society where sophisticated means of production are at hand, the situation is different; for if the underlying principles of communalism are not given correlated expression, class cleavages will arise, which are connected with economic disparities and thereby with political inequalities;

Socialism, therefore, can be, and is, the defence of the principles of communalism in a modern setting; it is a form of social organisation that, guided by the principles underlying communalism, adopts procedures and measures made necessary by demographic and technological developments. Only under socialism can we reliably accumulate the capital we need for our development and also ensure that the gains of investment are applied for the general welfare.

Socialism is not spontaneous. It does not arise of itself. It has abiding principles according to which the major means of production and distribution ought to be socialised if exploitation of the many by the few is to be prevented; if, that is to say, egalitarianism in the economy is to be protected. Socialist countries in Africa may differ in this or that detail of their policies, but such differences themselves ought not to be arbitrary or subject to vagaries of taste. They must be scientifically explained, as necessities arising from differences in the particular circumstances of the countries themselves.

There is only one way of achieving socialism; by the devising of policies aimed at the general socialist goals, each of which takes its particular form from the specific circumstances of a particular state at a definite historical period.

Socialism depends on dialectical and historical materialism, upon the view that there is only one nature, subject in all its manifestations to natural laws and that human society is, in this sense, part of nature and subject to its own laws of development.

It is the elimination of fancifulness from socialist action that makes socialism scientific. To suppose that there are tribal, national, or racial socialisms is to abandon objectivity in favour of chauvinism.

(kwame nkruma )

Yes, these are the original words designed by kwame nkruma/ Kofi Nwia to dissuade the likes of dummy , fickle minded easy prey and a sycophant LoudMouth/ Young Bajan Lion,W?leiatse,weeforman as well as Robot.

I think this political script written by your slave lord kwame nkruma himself to deceive many Ghanaians and Africans to stick to socialism against federalism and open market economic systems clearly answer your spinning attempt.

kwame nkruma used you dummy loudmouth to acquire his own riches in Guinea and you still don't catch it because you're so deeply indoctrinated with the corrupt ideology.

Now, have you see the argument he used in his attempt to destroy the Great Ashanti Kingdom?

Have you seen the argument he used to separate Brong-Ahafo from Ashanti to suppress our strength so that there will be no viable opposition to challenge him ?

Now, have you realize why he empowered Seckago and his folk alone to take over the administration of Ghana in his absence?

Now have you realized why Worawora was separated from Ashanti and added to Seckago and his newly created region from Togoland to give them more strength?

Now have you realized the point behind kwame nkruma's hatred to chieftaincy institutional affairs, but chose to rule like a King?

Now, have you realize why only Seckago and his folks were empowered to manned the civil and public services of Ghana? (Because he had believe and trust in them as the only people who can preach his gospel. Have you forgotten Rawlings naively saying that he is preaching kwame nkruma's gospel? That was in fulfilment to the oral bond he made with them)

Yes, with brainless people like you LoudMouth/ Young Bajan Lion,W?leiatse,weeforman,and Robot are we surprise that Ghana had lost all it's reputation in the international community and is relegated into the gutter ?

It's very disgusting and difficult for some of us to even associate ourselves in a country with uninformed elements like you who knows nothing but insults.

Stupidity, insane, brainless and irresponsible utterances like this makes it very easy for some of us to say that we're only Ashanti?s and Akans but not from the same country with your kind of nonentities.

If socialism is anything to talk home about, why don't you break away and introduce your much desired socialist measures like that of the former Soviet Union to your people and leave the rest of Ghanaians who want Western style of democracy in peace ?

Why are you begging the rest of Ghana to stay centralize together like in a socialist community so that you and ungrateful people can parasite on our resources for sustainable survival?

Why do you prefer to go to Western countries for better living rather than Cuba, North Korea, the former eastern block, and China?

Why do you still wear smart suits to look elegant rather than "Danta" or "Etam" in your daily activities or office duties?

Why did the former Soviet Union collapsed?

Why is the present Ukraine trying to flirt with the West and the European Union instead of going to their usual friend Russia?

Why is even today's Iraq voting to go federal and forgo the Sadam Hussein's centralize system to avoid any future occurrences that someone might accidentally emerge again to rule the country like his personal property ?

Your socialist inclined political family have ruled the former Gold Coast country for most part its existence since independence from colonialism and has driven it into HIPC bankruptcy like in the former Eastern block countries, yet you're still making empty and despicable noise to disturb civilized people.

Was Ghana a Kwame Nkrumah's property to have rule it for life?

Have you sat down to analyze to yourself about how Kwame Nkruma even came to the political scene in Ghana?

Which group of people started the independence struggle first and toiled with their blood to pave the way for your freedom today?

"Yen ara Y'asase ni, eye Abuoden den ma yen, Mogya na Nananom hwie gu nya de too ho maa yen"

How do you understand this line of statement in the national Anthem?

Is the theme talking about Kwame Nkruma and your stupid folk's lost blood for the independence?

Your fore-fathers were even teaming up with Europeans to fight Against Ashantis during the colonial struggle.

"Ye nko twa Abe a, wo se won nko, y'akotwa aba a, afei de wo'be we, Wano se Ghana Akatetwiwa" !

If Ashanti and Akans had stayed federal like in every civilized and developed nation, as JB.Dankwah and the traditional chiefs were demanding, the Cocoa, gold, timber and other resources would not have go wasted, and the Ghana would have been ruled with efficiency and competence in a corporate system.

Because of people like you, our resources have been senselessly under utilized by your lazy and corrupt governments of the past for procurement of loans into their own pockets , and also for investment projects in parasitic undeserved areas , of which some of them are payable for the next fifty years .

Had it not been you, our traditional authorities would not have applied for a external borrowing to finance development projects in our traditional state.

Break way with your people and send your senseless socialism to wherever you want, and leave my people in peace for their own progress !

Yes, Busia propounded for dialogue with Africa, because he realized that it was the only civilized way for amicable and long-term solution to peaceful settlement. His proposals had triumphed over your Kwame Nkruma buga-buga-chobuei uncivilized aggressive method.

Nelson Mandela is now recognized all over the world because he chose to the Busia's reasonale method of dialogue.

Did Arafat's PLO achieved a Palestinian State with Jerusalem as it's capital with your Kwame Nkruma's unreasonable old fashion method ?

Any civilized person will not use violence to fight violence.

I could see that you're deeply indoctrinated only to follow a senseless path. Ghana would have been like Zimbabwe today if Kotoka, Ankrah and Afrifa had not freed the citizens from your corrupt lord Kwame Nkruma who wanted to rule the country for life.

How greedy, uncivilized, short-sighted and corrupt are you people to have embraced your slave lord Kwame Nkrumah to rule the country for life?

Is it not an insult to all Ghanaians that there was nobody with the exception of Kwame Nkruma alone to rule the country?

Were you also not degrading, humiliating and dehumanizing your integrity for not having leadership skills, but only to play second fiddle to your saviour Kwame Nkruma for life?

Even University SRC and NUGS Presidents have duration of time to be in office and hand over to the next generation. So are common school prefects.

Pro and Vice Chancellors also have a duration of time to serve in office.

You're not even ashamed for allowing Kwame Nkruma and his bunch of thiefs to dictate and divert the country's seeded money and resources for their own selfish interest in Guinea and elsewhere?

Where did Kwame Nkruma finally leaved after he had been forced from the presidency?

This should tell you a lot.

Anyway, you are not so educated and smart enough to have come back from your stupidity to normal sense which is why I do not give you any blame.

I've tried to write it very simple for you to understand because you are simply dull!
Abosolutely Bogus
Author: Nana Yaa Achiaa
Date: 03-14 16:22 

jerry john rawlings` men of intergrity:

I) Amartey Kwei ( executed by firing squard. He was rawlings personal friend as he asserted on the BBC World Television interview recently. This man was empowered with state aparatus to kidnap and assassinate three high court judges and a retired military officer)

2) Victor Serlomey (convicted)

3) Kwame Peprah (convicted)

4) Tsatsu Tsika ( on tial for nearly collapsing the GNPC (TOR))

5) Kojo Tsikata ( still struggling to protect his good name )

6) Ahwoi ( involvement in the biggest corporate scandal in the country's history. CASPRO establishment with State money)

7) PV Obeng ( ( exporting concubines to Europe and North America with Sate money) Fa wo To be gye Aburokyire)

8)Tonny Aidoo ( Toilet bomber, and falsified academic papers)

9) Gyamfi Paul ( fake identiy to dupe Ghana with large sums of dollars in hospital bills)

10) jerry john rawlings ( personally piloting and conveying gold bars from Ashanti, Obuase mines to unknown destination till today)

11) Many of the PNDC parliamentarians ( buying their way to Parliament of Ghana with bribes given to voters)

........, and many more !

They all still owe accountability to the people of Ghana, because they forgot that they were mere civil and public servants and not civil and public Lords to the people of Ghana.

When Serlomey was stealing from Ghana's coffers, he deliberately refuses to consider the effect of his actions on the poor people of the street.

His own family's well being was his only prime concern and priority at the expense of the poor Ghanaians.

I have no sympathy for the P/NDC's consultant, Atta Nii Aryee, so do Victor Serlomey who only thrives on other people?s belongings for their prosperity.

Those who sympathize with the thief are also themselves thieves

May he perish in everlasting hell fire with hard Labour!

[National Economic watchdog]
Absolutely Bogus!
Author: Nana Yaa Achiaa
Date: 03-14 16:21 

Rawlings inconsistencies and lies at work

This statement of jerry john rawlings, can not go without comments because it is full of flaws and absolute lies

Now Compare and Contrast the two cases, and come out with your own judgement


Rawlings doubtful of G-8 debt relief :


Former President, Jerry Rawlings has expressed scepticism about the G-8 debt cancellation package for 18 poor countries, including Ghana.

The country stands to gain an estimated 5.2 billion dollars from the package ? funds which would otherwise have been used on debt servicing.

In an interview with the BBC, the former President said he?s adopted a wait-and-see attitude towards the declaration of the G-8.

?Let us hope that when the time comes they will deliver then we could believe them, ok. We?ve heard things like that before. (President) Bush when he was going to wage war against Iraq, he promised 15 billion (dollars) to Africa and the rest of the world. I am not too sure I have seen a penny yet?, he said.

Ex-President Rawlings said he believed corrupt African leaders had stashed monies stolen from their countries abroad as such the relief is a recycle of such monies. Source: Joy


Africa needs people power -JJ Feature Article by Flight Lieutenant Jerry Rawlings, former president of Ghana. Before I comment on the G8 summit, first I must condemn the terrorist attack on London and express my deep sympathy for the bereaved families, the wounded and the British people. The atrocity inevitably diverted the attention of participants and public, and it is impossible to know what the G8 would have produced had the shocking events of July 7 not occurred. We in Africa have been calling for debt cancellation for two decades. Responsible African governments have endeavoured to keep up their debt obligations and have at times been paying out a lot more than they receive. Therefore even selective debt cancellation is welcome.

The debt-relief debate has, however, engendered the false impression - dangerous for Africa's development prospects - that the G8 concession means access to more foreign, and free, funds for national development. The reality is that no funds are coming from external sources. Debt cancellation means the removal of the obligation to transfer financial resources to the creditor. This belief might lead to an unfortunate situation in which governments abdicate responsibility for sustainable economic development, assuming that debt cancellation is a panacea for their country's problems.

As one of the few African leaders to resuscitate a collapsed economy, I would have preferred unconditional debt cancellation for all sub-Saharan Africa, with a monitoring system to ensure that the released funds go into basic infrastructure, health, education and provision of good drinking water - and are not deposited in banks in donor countries. Why should some of the most deprived people continue to suffer just because they have governments that do not qualify for selection? Perhaps these people, if they had the basic needs of life, would have the strength to gain justice from their governments.

Indeed, it might even be the case that a few of those beneficiary governments would welcome debt relief as a way to replenish funds and entrench their power, violating their citizens' human rights and corrupting the moral fibre of society. Paradoxically, debt relief based on perceived good governance could inflict worse governance practices.

In Ghana the economy collapsed due to mismanagement and tyrannical rule. This led in effect to the revolt of 1979, enabling the nation to exorcise some of its anger. But you can't get the best out of people who feel enslaved and exploited; and fortunately, with hard work, we managed to channel the energy of anger into productivity.

Out of that revolt emerged a government under my leadership that was accountable and transparent, and maintained a high level of integrity. We did not empower ourselves at the expense of the people. On the contrary we empowered the people, through political and economic decentralisation.

Working with the World Bank and the IMF, my government halted Ghana's decline; we inherited a near collapsed state and built a 5% growth rate before handing over to the present government. This would not have been possible if I had presided over a corrupt, dictatorial and exploitative government. In other words, true democracy works - you can't go wrong when the people become part of the decision-making process and take equal responsibility for successes and failures.

At the G8 I would also have preferred to see some discussions on fair trade, rather than aid, to create sustainable development. On subsidies the outcome was weak - comforting words, but little real agreement or commitment to substantial action. Meanwhile, in Ghana, for example, textile factories are closing down, the poultry industry is in crisis, and our farmers cannot compete with cheap imports. Thousands are losing productive jobs.

I may appear to have a rather jaundiced view of Gleneagles, but there is cause for hope. Africa's battle to overcome poverty is due to the pressure from African nations and the wave of international support, especially from personalities such as Bob Geldof. These forces have sent a clear signal to the G8 leaders that their own electorates expect them to address global poverty.

At the same time, we in those 24 African countries that will benefit from debt cancellation have a responsibility to ensure that our governments put every single dollar that would otherwise have been consumed by debt repayment to work in the interests of the poorest of the poor: not through selective handouts, but by empowerment, education, and the provision of power and clean water - enabling our people to work and to live in conditions of human dignity and hope.

Source: The Guardian


It is clearly believed from the onset that jerry john rawlings was doubtful to the G-8 debt relief for poor countries including Africa, now that it has been manifested with the promises the richest nations made to the world, he is now trying to play a moral apostle here as if he is a well to do statesman.

When the Western Countries and Britain tried to convince President Kuffuor to declare Ghana a bankrupt state (not credit worthy nation, HIPC), rawlings and his socialist groups in the country opposed to the idea, because of the fears that the concept might figure out their mismanagement of the national economy. Now that it has been a successful plan to qualify Ghana for total foreign debt cancellation by the G-8 members, jerry john rawlings is now again crying fowl for the relief plan to cover for the whole arrogant nations in Africa who on paper projected themselves as rich nations and also opposed to the proposal from the beginning.

rawlings must go back to school and learn economics before he mingle himself up with such complex economic issues like this. He must know that in every situation there is a qualification process, and a nation have to do its homework properly to qualify.

Mr. rawlings, the bereaved families and the wounded people of UK don?t need your sympathy, because you also fall within the terrorist groups in the world.

For years, you have killed and destroyed families in Ghana. You had continuously terrorised Ghanaians that you pledge to protect and defend in your career as a soldier for almost two decades with your so called revolution. Tyranny and the culture of silence were among the characteristics of your misrule. Revolutionary dictatorship was your main concept of misrule. It is in this vain that the people of Britain would like to excuse you with this your well wishes message.

It was you and your illegal regime that was violating the citizens of Ghana human rights, infringing upon their freedom and corrupting the moral fibre of society. And evidence is there to prove that.

Mr. rawlings, you and your government killed the people of Ghana without a mandate from the people. You came to the political scene through the backdoors and destroyed a legitimate government of the Peoples National Party (PNP) which is itself a crime against the country. You had no madate from the people through the ballot box to kill Ghanaians and displaced Ghanaian families, but out of your own criminal instinct and political motives, you killed and destroyed to satisfy your personal interest.

Ghanaians did not endorse your plan with appreciation, except your small sycophant and corrupt followers. The State of Ghana did not kill to punish tax evaders, debtors from the bank, and other innocent citizens, but your P/NDC illegal regime headed by yourself. This is not a tangible reason for you to justify your atrocities and killings against the people of Ghana. The state of Ghana has no constitutional right to kill people without given them a proper trial from the proper courts.

First of all, prove that you had the overall mandate to kill. Many Ghanaians opposed to your idea of killings, but you objected to their pleas. Col. Bernasco for instance, of the Action Congress Party (ACP), Mr.Victor Owusu of the Popular Front Party (PFP) as well as the All Peoples Party (APP (Merger)) condemned and denounced this inhuman act officially in Public and in the media. Catholic Bishops and the Christian council also vehemently opposed to this irresponsible crime, but you wanted to prove to Ghanaians that you were a soldier and a messiah. You killed and destroyed Ghanaian famillies to satisfy your own hatred. Even some members from your own illegal cabinet did oppose to the killings, and Gen. Joshua Hamidu is an example of them. He has already expressed his objection to it in the public.

jerry john rawlings, I must tell you that, you killed for your self interest and not in my Grand-mother's name, you killed for your self interest and not in my fathers name, you killed for your self interest and not in my numerous Ghanaian friends' name , because none of them did endorse this your senseless and uncivilized actions,which is why you cannot use the name of the State to justify your senseless killings. You did worse than the crimes your victims commited and you are still walking free with your lootings. I have never seen any civilized nation in this modern world that have killed its citizen for mere owing a credit of 50,000 cedis from the bank, but you did.

Mr. rawlings, this is not the time to defend yourself and your illegal highway high way regime.

As your P/NDC regime handed over to Ghanaians, the national economy was already in shambles. You and your ministers found a way to loot everything from the State Coffers including cars and common refrigerators. You alone was having not less than 4 state cars in your possession of which the NPP government odered you to return them to where it belongs. You use fictitious names like Paul Gyamfi to dupe the nation further in the Switzerland. Today, you are among the richest people in Ghana and Africa despite the fact that you came to the political scene as a pauper. If your P/NDC illegal regime had leave a healthy economy behind, Mr.Kuffuor would have no reason to declare the nation an HIPC (not credit worthy nation)

Mr. rawlings ,it is for these reasons among others that you have no moral right to condemn anybody nor to blame the Rich Western Countries for your own problems you created for Ghana.

jerry john rawlings` men of intergrity:

I) Amartey Kwei ( executed by firing squard. He was rawlings personal friend as he asserted on the BBC interview recently. This man was empowered with state aparatus to kidnap and assassinate three high court judges and a retired military officer)

2) Victor Serlomey (convicted)

3) Kwame Peprah (convicted)

4) Tsatsu Tsika ( on tial for nearly collapsing the GNPC (TOR))

5) Kojo Tsikata ( still struggling to protect his good name )

6) Ahwoi ( involvement in the biggest corporate scandal in the country's history. CASPRO establishment with State money)

7) PV Obeng ( ( exporting concubines to Europe and North America with Sate money) Fa wo To be gye Aburokyire)

8)Tonny Aidoo ( Toilet bomber, and falsified academic papers)

9) Gyamfi Paul ( fake identiy to dupe Ghana with large sums of dollars in hospital bills)

10) jerry john rawlings ( personally piloting and conveying gold bars from Ashanti, Obuase mines to unknown destination till today)

11) Many of the PNDC parliamentarians ( buying their way to Parliament of Ghana with bribes given to voters)

........, and many more !

They all still owe accountability to the people of Ghana, because they forgot that they were mere civil and public servants and not civil and public Lords to the people of Ghana.

When Serlomey was stealing from Ghana's coffers, he deliberately refuses to consider the effect of his actions on the poor people of the street.

His own family's well being was his only prime concern and priority at the expense of the poor Ghanaians.

I have no sympathy for the P/NDC's consultant, Atta Nii Aryee, so do Victor Serlomey who only thrives on other people?s belongings for their prosperity.

Those who sympathize with the thief are also themselves thieves

May he perish in everlasting hell fire with hard Labour!

[National Economic watchdog]
Abosolutely Bogus
Author: Nana Yaa Achiaa
Date: 03-14 16:18 

In as much as people are criticizing and condemning somebody`s serious drug crime, they must also remember that Politicians throughout the world are not free from scandals. Some are even more than this.

- Others deliberately condemn state corporations and throw numerous workers` destiny into disarray, and thereafter use state money to buy this same state properties for their own families. Such crimes are more than serious and also more than this cocain business, because it entails day-light robbery and theft

- Others use family members , or friends names to open bank accounts in foreign countries and re-channel state money into such accounts for their personal use.

- Others use family and friends names to open private companies and turn around to give state contracts to these non-existing companies.

- Others openly sell state properties directly for themselves and buy it very cheaper with the same money they have stolen from the state.

- Others diverts state money into their own house and turn around to say that the money has been stolen on the way.

- Others diverts the proceeds of state cocoa and other cash crops into their own accounts, and turn around to say that the ship that was assigned to transport the goods had been capsized, and all the crew were rescued, but the goods got lost in high seas, whilst there is no records to prove that.

Others use state aparatus to transport Gold and other natural resources and diverts its proceeds into their own personal accounts in foreign countries.

- Others secured loans on behalf of the state from foreign financial institutions and divert it into their own personal accounts.

- Others collect bribes from foreign companies before they assign them contracts.

- Others use state apparatus to abduct and kill their personal enemies.

- Others collects bribes from foreign head of states and promise to defend their punctured reputations for them in the international political arena.

- Others use friends names under-cover to build magnificient houses with state money

- Others are directly involve in human trafficking. They use state money to smuggle their girl friends and other relatives into foreign countries

- Others exchange blows during hot debates in Parliament and Japan as well as other Asian countries could well be sited as an example.

- A certain President in Ghana even openly beat his Vice-President to disgrace a whole country in the world of politics without impeachment.

- Others stand behind other cabinent members like Amartey Kwei to assissinate intellectuals and other opposition members.

- Others use state money to buy votes to gain entry into public offices and Parliament despite their lack of competence for the job.

- Others use state cars and other transport means to attend their own private activities and other engagements like unnecessary funerals, and holidays elsewhere.

- Others use state hotels for their private activities without paying for it.

Some politicians are simply corrupt and over-burdened with scandals.

Fingers have to be pointed to all directions!

Indeed this is very despicable
Author: Nana Fredua Agyemang
Date: 03-14 15:56 

It's usually healthy and welcome to prove and provide for alternatives before resorting to condemnation.

Criticism is also nice, but it must be adressed with insightful reasons and better solutions.
Federalism is the way forward
Author: Nana Fredua Agyemang
Date: 03-14 15:55 

I'm trying to take an entirly different aproach to understand why some nations are rich and others are still poor. I believe the explanation can be found within the underdeveloped nations like Ghana themselves. With people like Wofa Yaw at the helms of affairs who is only interested in bogus economic experiments but no meaningful commitment,I don't think Ghana can make any step forward.

The P/NDC used the country like a laboritory, and experimented it with so many economic models including PAMSCAD,SAP,ER etc.but it ended up only with poor results. Nkrumah,Acheampong,Akuffo and Hilla Liman followed with the "central planning system and the end result was HIPC catastrophy.

Wofa Yaw is arguing like a typical Ghanaian economic expert who is only interested in external aid but is resistable to any modern advice that will assist him to move forward.If your proposed mixed economic models were anything to be reckoned with,why is it that we are not developing but instead have relegated to bankrupt underveloped zone,despite previous same attemps by Rawlings's wasted regime ? "Fa wo sika no bra ma yendi, na w'a dwene no ene nea wo'ka no eye, nso ye'nfa". Krobo Adusei type of politician,backwards ever forward never !

Under Bill Clinton and Greenspan,they were able to balanced the US budget.The US economy was booming in 1999 and many jobs were available.Americans are now having deficit due to Bush's involvement in the war of terrorism.

Wars are traumatic for both who fight them and for a nation's economy.Because the economic changes accompanying them are often large,wars provide a natural experiment with which many economists can test their theories. During wartime, endogenous variables responds to major changes in exogenous variables in the economy.One exogenous variable that changes substantially in wartime is the level of government purchases and government borrowing to finance the wars.This would raise the demand for goods and services,reduce the supply of loanable funds,and raises interest rate. A dramatic reaction in military purchases and interest rate would be very apparent. Interest rate do tend to rise when government purchases increase.

I assume that Wofa Yaw know the economic consequences when interest rates are high.Massive unemployment and othe negative reations may follow.

During wartime,many things may be happening to the economy at the same time.Example government purchases would increase dramtically,rationinng would also restrict consumption of many goods in addition to the risk and anticipation of losing the war ,and government's default on its debt would presumably increase the interest rate that the govenment must pay. This explains why the USA is currently having economic deficits. Because the G8 economies are also intertwine to each other, the multplier effect of the American economy is having its serious impacts to those european countries that Wofa Yaw made mention of. I can assure Wofa Yaw that,this economic crises,brought about as a result of Bush's policies won't be there permanatly.They will fix it with a sustainable solution in due course.

Germany was also having a balanced budget during Helmut Kohl's CDU/CSU and FDP coalition administration in the 1980's and the economy was booming with many jobs available.Influx of migration from poor countries into the Bundesrepublic was very enormous and beyond explainanation.

Unlike uncontrolled laboritory experiments,natural experiments on which Wofa Yaw is relying upon is very difficult to interpret.I doubt if he actually understands the principle he has outlaid up there.

In advanced industrial economies ,the early merchant classes were responsible for breaking down the traditional feudalism and replacing it with a market economy oriented toward growth and development.In many developing as well as underdeveloped Ghana,however,the class that could foster capitalism has not followed the same path.In my view potential capitalist reformers in Ghana have not transformed our traditional society but have instead maintain the status quo and have thus a retarded economic advancement.

I can deduce that the so called experts of the past, have taken a position of "dependency theory" for the country. Dependency breeds poverty and that explains Ghana's present economic plight.A dependent country is one whose economy is dependent on the development and expansion of another country's economy.

During the colonial period ,European powers dominated much of the political and economic life of what is today Ghana and the underdeverloped world.

The British Colonial powers directly destroyed Ghanaian local industries ,either by prohibiting certaian economic activities or by flooding the nation's market with manufactured goods.Furthermore,by not developing basic physical infrastructure or local human capital and by draining our mineral wealth. Ghana has become economically dependent and helpless since we achieved independence,because of the colonial trained mentalities like Wofa Yaw who took over from the colonial Masters. All that people like Wofa Yaw knows is the blame game without putting down the country's economic structures in order.

The unequal relationship of between rich and the poor in the world market today works to the detriment of the underdeveloped world like Ghana.Because of implicit political divisions among the nation's economists and lack of cooperation, there has been ,and would virtually have no progress in reaching any sort of accord so far as the likes of Wofa Yaws ar still in control.
Federalism is the way forward
Author: Nana Ama Serwaa Odokwasiri
Date: 03-14 15:39 

This is my thought!

Also, this is how I diagnosed the problem .

Nice to know that the learned Professor of economics and an expert on African affairs have also sided with me, and has realized that it is a structural deficit problem that is facing Ghana.

My I advice is that "Do away with the kwame nkruma`s unitary system and there will be a bright future for the nation"!

In Germany constitutional lawyers, politicians, and the attentive public speak of ?dual federalism.? In some federal economies this means that the federal government and the states have separate political and administrative responsibilities and their own sources of revenues.

In Germany, in contrast, dual federalism means that the federal government, i.e., the executive and legislative branches, are responsible for most legislation, and that the individual federal states generally administer the laws (in large part through their local governments) on their own responsibility.

In the German federal system ?dual federalism? has been undermined if not replaced by ?cooperative federalism,? generally associated with the New Deal era in some other federal economies and the Finance Reform of 1969 in Germany.

In the meantime ?intergovernmental relations? has more or less replaced the concept of ?cooperative federalism? in some federal economies, while Politikverflechtung (political/policy interconnection and coordination) is perhaps the more commonly used term in Germany today.

In this case the new term reflect an interrelationship among federal, regional, and local levels that goes beyond mere cooperation.

One very good example of interconnection in German federalism is the system of public finance. The individual States have no Steuerfindungsrecht (autonomous tax authority) , and the local governments have very limited authority to raise revenues on their own. Instead, the most important taxes are shared. Thus the corporation tax is divided 50-50 between the federal and State levels; the individual income tax is divided so that the federation and individual States receive 42.5 percent each and the municipalities 15 percent.

The distribution of the value added tax (VAT) is more complicated: the federation receives 5.63 percent for old age pensions and municipalities receive 2.2 percent in compensation for the elimination of the capital business tax; the remaining 92.17 percent is divided between the federation, which receives 50.5 percent, and the autonomous federal States, which receive the remaining 49.5 percent. There is also Gewerbesteuer (a local business tax) that is shared among the three levels. These taxes and their distribution are determined by the federal government (cabinet) and the overall national parliament, but only with the approval of the Senate (Upper House), the legislative chamber that represents the autonous individual States. They are not, therefore, ?federal? taxes, which would include less important sources such as customs duties, the gasoline tax, the tobacco tax, and the solidarity tax surcharge for aid for East Germany (currently 5.5 percent).

The personal income tax and corporation tax revenues are distributed according to the residency principle, whereas 75 percent of the State share of the VAT is based on population. The remaining 25 percent is distributed to the poorer individual State in the country to bring them up to 92 percent of the average per capita revenue of all autonomous individual States. Transfers from the richer to the poorer States are then made by complicated procedures until the poorer States have reached 95 percent of the average revenues for all individual States.

Finally, federal supplementary grants are provided the poorer States in order to bring them up to 99.5 percent of the average.

From the perspective of those Germans who support this complex system of revenue sharing and revenue transfers, it is precisely the general fiscal equalization among the States that makes it possible for them to carry out all of their functions autonomously and to meet the constitutional requirement of providing equivalent or uniform living conditions (Article 72, para. 2, and Article 106, para. 3).

Equivalent living conditions do not mean the elimination of all differences in living conditions throughout Germany, but the concept does suggest generally equivalent public services and standards that only an adequate funding of all government units throughout the country can provide.

The goal of equivalent living conditions (not living standards!) is anchored in the principle of the social welfare state, the state of law, and the federal state (Article 20, para. 1).

In addition to the example of the Politikverflectung given above, one could look at the participation of the state governments via the Upper House or Senate in the federal legislative process (the Upper House has veto rights over approximately 60 percent of federal legislation) or the coordination and cooperation that takes place among State cabinet officers and high-level bureaucrats, e.g., via the conference of individual State prime ministers or the conference of education and cultural ministers, as well as via conferences of State and federal officials.

As a result of the participation of the individual State governments in the legislative process via the Senate and the numerous conferences involving federal and State officials, references are frequently made to the German system of ?participatory federalism? or ?executive federalism.?

?Administrative federalism? is often used to describe dual federalism in Germany. Germany is also often referred to as a ?unitary federal state,? a term that goes back as far as the early 1960s. The designation of Germany as a ?unitary federal state? is the result of numerous centralizing features, such as the fiscal equalization procedures described above that have evolved largely due to the constitutional requirement of ?equivalent? or ?uniform? living conditions throughout the country and the cooperation and coordination between federal and State officials. In more recent years one could add the centralizing trends that have emerged from EU legislation.

There have been numerous proposals for reform of the German federal system since its creation in 1949. One broad proposal that retains support among a handful of persistent advocates is the redrawing of boundaries of the States. An expert commission report in 1973 called for a reduction in the number of States, which, of course, entailed a consolidation, and redrawing of boundaries.

A massive scholarly literature has also appeared over the decades advocating territorial reform, but opposition by other scholars and elected officials has prevented any action. A referendum to consolidate Berlin and Brandenburg in May 1996 that was supposed to set the stage for other referenda failed, in large part because of opposition by voters in Brandenburg and the eastern part of Berlin.

The former prime minister of the Rhineland-Palatinate, and the prime minister of Thuringia in the 1990s, warned in 1990 at the time of unification that ?now is the time,? and if action to consolidate the States does not take place soon after unification, it will be far more difficult to act later.

Some scholars note that there are significant differences among the other federal states countries and regional governments in other federations without serious calls for territorial changes that would bring about more equality in terms of population and tax capacity; however, the argument the proponents of boundary reform in Germany make is that the German system of dual federalism requires strong states that have the administrative and fiscal capacity to implement legislation and pay for it from own source revenues.

Too many States also make coordination among them and with the federation more complicated, small ststes can hardly meet the demands of dealing with various challenges posed by the EU, and efforts to achieve ?equivalency? or ?uniformity? of living conditions are too dependent on federal assistance. But in spite of these and other arguments for boundary reforms, action has not been taken, and, as one Prime Minister predicted, it is indeed far more difficult today to talk about consolidation.

After unification in October 1990, huge transfers of funds were made from West to East. In principle, the East was to be integrated into the general financing system described above by 1994, but it soon became apparent that this was not realistic. As a result discussions were held in 1993, which led to the Solidarity Pact I that went into effect in 1995. It provided for some huge annual transfers to the East for ten years and debt relief.

A federation tax was imposed on all citizens, East as well as West, consisting of a surcharge of 7.5 percent on personal income taxes and corporation taxes. This was reduced to 5.5 percent in 1998 and still applies today. The five new States were included in the horizontal equalization scheme, and in compensation the individual states share of the VAT revenues was raised from 37 to 44 percent, then later to 49.5 percent. The federation thus gave up a large chunk of its VAT revenues and agreed to transfer large sums to the eastern ststes in order to raise their fiscal capacity to 99.5 percent of the average. The end result was to make the new ststes more fiscally capable but also more dependent on fiscal equalization procedures than the poor ststes in western Germany ever were.

Solidarity Pact I was to end by 2005, by which time it was assumed the eastern states would have adequate financial capacity. Largely in response to a complaint brought by several rich ststes in the West to the Federal Constitutional Court, which rendered a decision in November 1999 requiring changes regarding fiscal equalization procedures, discussions were held between the federal government and the states that led to an extension of the Pact from 2005 to 2019.

During this time the ststes are to receive huge amount of some billions of euros, mostly in the form of grants from the federation. These grants will be reduced over the years until 2019, when they will stop altogether.

Several provisions of the Basic Law that affect the distribution of powers were amended in 1994, including Articles 72, 74, 75, and 93. Article 72 grants the federation concurrent powers, and paragraph 2 was amended so that such power can be claimed only if it is ?essential? or ?required? and not just the result of a perceived ?need.? One of these ?needs? was the establishment of ?uniformity of living conditions.? As of October 1994 the federation can claim a federal preemption to be ?essential? only in the general interest of preserving ?equivalent living conditions? or to secure the legal and economic unity of the country.

It was thought that the strong unitary pressures of ?uniformity? of living conditions would be lessened somewhat by the term ?equivalent,? which means conditions can vary from state to state.

Furthermore, under a new provision added to Article 93, the state governments, state parliaments, and the Senate can take any disagreements over what is ?essential? to the Federal Constitutional Court, which they could not do before the 1994 changes. A third paragraph added to Article 72 would return power to the states if and when a ?requirement? for a federal action no longer exists.

So far there are no examples of a power that has been returned. The responsibilities of the states, as important as they may be?especially in the general area of culture, education, local government, and police, pale in significance to the concurrent powers of the federation.

It is not surprising, therefore, that considerable dissatisfaction has been expressed concerning the division of powers in German federalism.

Federal framework laws, provided by Article 75, are another important source of federal legislation. They differ from laws passed under the federation?s exclusive and concurrent powers in that they are directed at the state legislators for further legislative action by them. It is assumed that the legislative details to be completed by the state legislators are of some significance and are arrived at freely. In part to prevent the repetition of some past federal intrusiveness, a new paragraph was inserted in Article 75 in 1994 which states specifically that framework legislation may go into detail only in exceptional cases.

These constitutional changes have had a modest impact at best, and they have done little to satisfy those who believe far more dramatic reforms are necessary.

After years of criticism about various aspects of German federalism and general agreement that the reforms mentioned above were inadequate, a commission was formed in the fall of 2003 to propose new reforms. Its official name was Kommission von Bundestag und Bundesrat zur Modernisierung der bundesstaatlichen Ordnung (KOMBO).

It consisted of 32 voting members, 16 each from the national Parliament and the Senate or Upper House, i.e., one member per state from the Upper House. These members were the prime ministers of the States, and their deputies were the heads of the respective offices of the prime minister or ministers of justice.

The federation had no voting members, but it was represented by the head of the federal chancellory, the minister of justice, the minister of finance, and the minister of agriculture. Non-voting members included two state parliament presidents, four party group leaders from state parliaments, and three representatives of local government associations. There were also twelve professors who are experts on federalism. Altogether there were 102 persons involved.

Two important issues?some would say issues crucial to any reform?were omitted from consideration: territorial reform and fiscal equalization. As noted above, these have been major bones of contention for decades; however, their inclusion in the deliberations would have brought bitter conflict into the deliberations and probably have doomed the enterprise from the beginning.

According to one analysis of the results of the deliberations, the general trend since 1949 toward more centralization (unitarianism) and Politikverflechtung (interconnection) was reversed, which was a major accomplishment. The winners would have included the parliaments at the federal and state levels. The Senate decisions would have been somewhat less subject to Senate`s vetoes, and state parliaments would have gained somewhat in legislative responsibility; however, both institutions had little influence in the Commission. Losers would have been the prime ministers of the states due to the reduction in Politikverflechtung.

The federal leader of the Opposition would have gained influence at the expense of the State prime ministers of his party. Other losers would have been the ?subject matter brotherhoods,? i.e., the federal and state ministers who meet at the horizontal and vertical levels to work out policies that they then push through their cabinets.

In early 2004 it appeared that the local association leaders had made good progress in achieving some of their goals. For that reason there was considerable disappointment in their ranks when the failure of the Commission was announced in December 2004.

Options after the Failure of Reform

When the co-chairs of the Commission announced on December 17, 2004, that the Commission had failed, disappointment was expressed from every conceivable corner of the political, academic, and financial establishment. Many argued that a new commission should be formed after the federal election on September 18, 2005. Some suggested that it start over and tackle problems not dealt with before, others hoped for a commission that would focus on those reform proposals on which there seemed to be basic agreement in the old commission. While this seemed to be the most common suggestion, another option would be to continue to muddle through under the current system with incremental changes of varying significance brought about by legislation passed by the new government and national Parliament with the cooperation of the Senate. Finally, there are those who are not that unhappy with the status quo, in part because they see the current system of cooperative federalism as one promoting compromise and consensual politics.

But this is the least desirable option from the perspective of many experts, who would predict that the German federal system would then take on even more unitary features and be subjected to even more Politikverflechtung. The risk of doing nothing would be not only the continued weakening of the federal system but also a growing Politikverdrossenheit (public disenchantment ) with the lack of clear decision making responsibility and accountability in the German political system.

In Germany , politics is made at the federal level and very little is designed on the Federation front, which is why they need very few ministers for overall representation of the country.

Every town and city is independent from each other. All the towns and cities also have their own mayors with a cabinet, and a federal state government which represent them for most of their needs. Individual states are autonomous and they also appoint their own ministers from source. Example when it comes to decision making process in the finance ministry,all finance ministers from all individual states accross the country comes together and design a very sound and remarkable financial plan to solve the countries problem without help from the Chancellor, or the Federation`s Prime minister, the President ,or from any external source. They design local plan to solve all local problems. The IMF/world Bank, or the OECD is simply irrelevant and as such they are not needed in all local financial affairs. Same process applies to the other ministries.

Except things that are done in the form of economies of scale like railways, the military, highways. etc are administered at the federation front.

Big and stronger federal states are required to help and bail out the weaker states from their debt burdens, so that they all can also meet the German and European standards. Nobody has been put on the scale of affirmative action like it is in the unitary system in Ghana,because that would be translated to mean as a financial and economic discrimination against the stronger States. Every State is entitle to govern itself with its own bank accounts.

In Ghana for instance, the whole country enjoys only one common fund (Bank Account) which is being operated from only one source of office. In such a desperate stituation, no one should expect distribution of national development to be fair , since Favouratism, choices, corruption ,discrimination and punishment against enemy regions is expected to be the order of the day .

In comparative to the German Federation system, it is a constitutional right for every one of the 16 member states to chose a representative to serve at the federation level in the cabinet. That`s why the coalition government is not allowed to appoint more than 16 ministers.

16 states must equate 16 ministers for fair distribution of national cake

16 states = 16 ministers

They don`t need more ministers for nothing !

Political reforms is very urgent in Ghana, since the country needs a federal system to improve and empower the living conditions of the people and also to upgrade the development of the towns and cities equally throughout the country to meet 21st century modern times!

Almost all towns and cities in Ghana are regretably fading out completely instead of progressing, in other words they are retrogressing rapidly, and are also being over-shadowed by Accra .

Let the "would-be Federal States" in Ghana govern themselves rather than the President`s office taking control and trying to adminster everthing in the country.

The President cannot do every thing since he is not God !

No wonder that I.K Acheampong publicly admitted he is not God to pour down water on earth.

In a similar situation, Kuffuor also proclaimed that he is not the one who created poverty. It is so because :

"Tikro nko Agyina"


"Dua Kro nso gye Nframa a, ebu" !

The existing unitary system is very corrupt and bankrupt !

When politicians need job and power they promise to bring heavens to come down, but as soon as they acquired the desired positions , they quickly turn out their back against the constituencies and start playing blame and shifting games. Who then should do the job for them ?

Why don't you make reforms and move away from the kwame nkruma`s corrupt socialist unitary system that he forcibly bequeathed to Ghana against the peoples interest ?

This type of corrupt Socialist unitary system of govenment in Ghana has no place in any true democracy. The people of Ghana are craving for reforms because they want to liberate themselves out of poverty.

This is not the type of liberation democracy that Nana Yaa Asantewaa, and my Great Grand-fathers as well as your fore-fathers were fighting for.

Likewise Asanteman State and Mfantsiman, Okyeman also needs its own Bank accounts to govern itself without external interferances.

Affirmative action only makes some people to become pepertual lazy and it also deters true development !

Ghana cannot be govern effectively in this present system as if it is only one single State like the Ogun State!

The people need true democracy and not the kwame nkruma made type of tyrany government.

There are several thoughts that Ghana cannot make any meaninful progress under this present system unless good political reforms have been taken place. Conditions in this present unitary system is like "pouring water into a basket". No amount of money can revive or save this corrupt system and the nation! Without effective reforms,the IMF/World Bank will continue to pour in trillions of dollars into this existing porous basket, but parasites like Bagbin will also use their opportune position to drain everything from the basket by even requesting their toilet roll from State coffers.

It is so absurd to expect someone, or financial institutions from afar to draw financial policies for the nation whilst some public officials are there sitting down idly and collecting slaries for no work done. What and how are they then paid for ?

Federalism is one of the best ways that could promote effective "checks and balances" in Ghana !

Reform now to save the nation and its next generations !
Indeed this is very despicable
Author: Nana Fredua Agyemang
Date: 03-14 15:36 

Development in Ghana cannot proceed without human resources capable of initiating and managing the economic activities.

The best way to provide social services is to resort to "social overhead capital" methods which is entirely different from central planning system of economic governance.

Anyone who has spent time or have lived in Ghana knows how difficult it can be to send a letter,make a local phone call,or travel within the country itself. Add to the list of obstacles problems with water supplies,frequent electrical power outages in the few areas where electricity is available at all.And often ineffective mosquito and pest control,and you will soon realized how deficient even the simplest,most basic government-provided goods and services can be. This deficiency has become obvious in the country due to lack of economic will power and commitment from economic administrative detractors like Wofa Yaws who are only insterested in pointing accusatory fingers but unwilling to execute preferable and morden economic structures.

In any economy,Third world or otherwise,the government has considerable opportunity and responsiblity for involvement where conditions encourage natural monopoly(as in utilities industries) and where public goods such as health care and education must be provided. Even in underdeveloped Ghana,it is the governments obligation to place particular emphasis on creating a basic infrastructural needs for the people,like roads,power generation and irrigation systems.

There are good reasons why such projects ,refered to as social overhead capital,cannot successfully be undertaking by the private sector. Many of these projects operates with economies of scale,which means that they can be efficient only if they are very large.In that case,they may be simply too large for any private company,or group of companies,to carry out.

Second, many socially projects cannot be undertaking by the private sector because there is no way for private agents to capture enough of the returns to make such projects profitable. This so called "free-rider problem" is also very common in the economies of the developed world.

Provision of schools,hospitals,roads ,electricity and housing is not only a socialist system as Wofa Yaw might have concieve to be.It is also an open market system because the western world also goes to school and even have the best schools in the world,they fall sick, and also have the best hospitals,they travels,and therefore have the best highways,they need energy,and have the best power generators,the same applies to housing because they also need accomodation.


It is possible to finance all these projects if the officals in charge of the country are willing to put down a sound economic structures that generate economic revenue domestically without borrowing from outside financial sources.


It is impossible in Ghana,because lazy officials like Wofa Yaw only enjoy sitting in air condition offices doing nothing but expects foreign donnors to do their work for them.

On the questing of protectionism,

I'm convinced that the theory of comaparative advantage,dating back to the writings of David Ricardo in the 19th century,which holds that specialisation and free trade will benefit all trading partners,is the best solution as opposed to the imposition of tarrifs. Free trade benefts all,even Ghana that may be absolutely less efficient producers.

A country enjoys an absolute advantage over another country in the production of a product if it uses fewer resorces to produce that product than the other country does. A country has a comparative advantage in the production of a product if that product can be produced at a lower cost in terms of other goods.

Trade enables countries to move out beyond their previous resourses and production constrains.When countries specialize in producing those goods in which they have a comparative advantage,they maximize their combined output and allocate their resources more efficiciently.

For any pair of countries ,there is a range of exchange rates that will lead automatically to both trading countries realizing the gains from specialization and comparative advantage.Within that range,the exchange rate will determine which country gains the most from trade. It is the exchange rate that determine the terms of trade. In this repect, I would expect people like Wofa Yaw to do something about Ghana's exchange rate in order to survive in trade with Nigeria and other West African ECOWAS states instead of sitting down idly and poorly criticizing.

If exchange rates end up in the right range,i.e,in a range that facilitates the flow of goods between nations,the free market will drive each country to shift resources into those sectors in which it enjoys a comparative advantage. Only those products in which Ghana has a comparative advantage like Cocoa,vegitable & fruits,agricultural products like yam,rice ,casava, salt,meneral resources like gold, lumber & logs, tourism,sports among others will be competitive in world markets.

It is of this view that I will always opt for free trade.
Indeed this is very despicable
Author: Nana Fredua Agyemang
Date: 03-14 15:31 

Ghanaian producers and farmers have to do away with subsistence form of production ,or farming and form cooperatives in real comercial terms, instead of only singing a senseless melody.By so doing they will survive in business in the long-run.

Government also have to shift from primitive methods of production into manufacturing of its goods in order to sustain long term benefits. They will never acquire any meaningful solution by mere slogans of noice.
Date: 03-14 15:27 

A lie is a lie so anyone who lies to the good people of Ghana will be punished by God.
Indeed this is Bogus!
Author: Nana Fredua Agyeman
Date: 03-14 15:20

This is a typical example of this web site`s dirty work in a attempt to present themselves as some persons to be reckoned with.

Usually, they use to scream like kids for help,but as soon as they get it from Asantes, they then turn around to insult Odumgya, Asantes and their tarditional leaders to display gacious ethnic hatred.

They pretend themselves as if the depth of their think faculty is something so worthwiled.

This is an evidence of a Fake economist!

Author: Young Bajan Lion (registered user)

Date: 11-01-2003 12:10

Ghana... the REALITY.

Nuff Respect, Young Bajan.

The Trade Trap - transcript

COMM: Previously on Life...

CAROL BELLAMY: Globalisation has taken place and it's good there's economic improvements in some parts of the world, but it has created greater disparity in some parts of the world.

KLAUS TOEPFER: The disappointments are unluckily more than the positive signals. There was a huge increase in the gap between the rich and the poor.

JAMES WOLFENSOHN: Globalisation basically means that we're all living in each other's world.

COMM: In Ghana, everyone knows about trade. Everyone knows about markets. In a land of sunshine everyone has something to sell. And yet Ghana still relies on foreign aid for most of its national budget. Now the rich countries say it's time to change: countries like Ghana must begin to trade their way out of poverty. It's one of themes of this month's Summit on Sustainable Development. So, in this edition of "Life" we've come to Ghana to find out how easy selling in the world market place really is. Our guide: top Ghanaian trade expert Augustine Odongo of F.A.G.E.

AUGUSTINE ODONGO: FAGE stands for Federations of Ghanaian Exporters, it's a member-based organisation. Our, our uniqueness derives from the fact that we are member-based, we deal directly with members in the field. And that is our raison d'etre.

COMM: Augustine's job is to help Ghanaian exporters. If anyone can help understand their problems, it's Augustine. First stop, five hours north of Ghana's capital, Accra: one of Africa's biggest maize farms.

AUGUSTINE ADONGO. CEO, Federation of Associations of Ghanaian Exporters (FAGE): Er, we're going to Ejura Farms. This is one of the largest, if not the largest maize farming set-up in Ghana. The information that is available is, is this: that as a result of the impact of maize, especially for the animal feed industry - poultry in particular - they have had hold-ups on stocks which they cannot offload on the local market because they, they simply cannot compete with the price of imported maize. Now, what, what I hope we will be able to see is have a discussion with they themselves - the managers and the workers themselves - to see the full effect of this on them.

COMM: Straight to the heart of the problem: even this huge farm can't compete with maize from countries like the United States that subsidise their farmers. Some of the stocks in these silos are held for the national reserve. But mostly they just can't sell it.

AUGUSTINE ADONGO: I understand that you have quite a stockpile of maize up there in the granary. At this time of the year you should be off-loading this grain to make room for new maize coming in.


AUGUSTINE ADONGO: So why are you still keeping this?

FELIX AMOAKO, Farm Technician, Ejura Farms: Just because the government has allowed certain industries to import the maize - to import foreign maize into the country.

AUGUSTINE ADONGO: Now what is the problem with foreign maize coming into the country? Does that create any problems for the local producers?

FELIX AMOAKO: Well, yes, the imported ones are cheaper.

AUGUSTINE ADONGO: The imported maize is cheaper?

FELIX AMOAKO: Yes. Since our cost of production is high we cannot sell our maize at a very cheap price.

AUGUSTINE ADONGO: Your cost of production is higher?

FELIX AMOAKO: Yes, in terms of the fertiliser - inputs like fertiliser, chemicals like herbicides, the labour, and so forth.

AUGUSTINE ADONGO: Who do you normally sell your maize to?

FELIX AMOAKO: We used to sell to the poultry industries.

AUGUSTINE ADONGO: The poultry industry?

FELIX AMOAKO: Yes, they are the major consumption of the...

AUGUSTINE ADONGO: They are your major - the major consumers of...

FELIX AMOAKO: Of the maize.


FELIX AMOAKO: Yes. AUGUSTINE ADONGO: OK. And if they have access to cheaper imports, then...?

FELIX AMOAKO: They won't come to us.

AUGUSTINE ADONGO: They won't come to you?


AUGUSTINE ADONGO: So what then do you do then with the maize that you're holding in stock which the, the farmers...?

FELIX AMOAKO: We wait until - until the price goes up.

AUGUSTINE ADONGO: Until the price goes up?



COMM: And there's another reason the farm's maize is more expensive.

AUGUSTINE ADONGO: We've taken a look round and generally it appears that the equipment is old.


AUGUSTINE ADONGO: Then any problem with keeping old equipment? Why are you not replacing it?

FELIX AMOAKO: I think it's all down to one point: the financial problem.

AUGUSTINE ADONGO: Financial problem?


AUGUSTINE ADONGO: What of your own income levels?


AUGUSTINE ADONGO: Generally speaking, the income levels here are quite low.

FELIX AMOAKO: Since we are not getting enough we cannot go to the managers and make unnecessary demands, you see.

COMM: No unnecessary demands - these workers on under a dollar a day know the management can't afford to pay more. Countries that face unfair competition can appeal to the World Trade Organisation, but subsidies to crops like maize are within its rules. Next stop the local town of Kumasi and one of the maize farm's customers: poultry plant Darko Farms.

AUGUSTINE ADONGO: We're now going to Darko Farms - Darko Farms is one of the largest poultry farms in Ghana. We're going out to confirm the story that we heard at Ejura Farms about the impact of imported maize because, as Ejura Farms' people told us, Darko Farms are one of their major buyers.

AUGUSTINE ADONGO: But the Ejura Farms people also explained that now they've stopped buying from them because they're buying the imported one, which is cheaper in terms of price. So we want to find out if this is true.

COMM: What Augustine discovers: the plant hasn't cancelled its orders but has cut back on expensive local maize because it's also facing competition from cheap foreign imports.

JONATHAN DARKO, Finance Director, Darko Farms, Kumasi: We do import yellow maize - but that does not mean we have stopped buying from them because of that reason - but we do import yellow maize from time to time. For about three years now, I think, we have imported. When the prices are higher we bring in the maize to give us a lower cost of production so that we can compete with the imported chicken out there. Because the price the imported chicken arrives over here is relatively low compared to what is being produced so with the higher cost of production, you can't really compete with the imported chicken.

AUGUSTINE ADONGO: So you'd, you'd put the higher cost of production here as the main cause of the higher prices that you are offering to the consumer?

JONATHAN DARKO: Er, relatively, yeah - the higher cost of production. But I also looked at it from this angle: that the goods coming from there, the maize or whatever, has been subsidised which is a lower cost for them to produce over there. So if you don't have that thing relatively here you know that you're going to run into that problem.

COMM: If they can't compete with cheap imports in their own markets, not much chance of Ghana's farmers selling abroad, no matter how tasty and well cared for the product. But cheap imports aren't the only challenge. Next stop: a banana plantation in the central lakes Region of Ghana.

AUGUSTINE ADONGO: Where - where does this come from?

ALEX YEBOAH ATAI: From the plantation.

AUGUSTINE ADONGO: From the plantation?

ALEX YEBOAH ATAI: Yes... Then the selection process begins.

COMM: Volta River Estates export to the EU - to Europe. Their problem: trying to comply with the EU's licensing rules.

AUGUSTINE ADONGO: Alex, you have quite a good set-up here and you export to Europe. Have you had any problems exporting to Europe?

ALEX YEBOAH ATAI, Personnel Manager, Volta River Estates: Indeed, there is. Er, you know, we still have to overcome this European Union licence system on banana...

AUGUSTINE ADONGO: Can you explain that further? What is this 'licence system'?

ALEX YEBOAH ATAI: Well, you know that I'm not a technical man. But what it means to me as a farmer is that we're not able to get our export into the market.

COMM: Washing the crop is easy enough. So is spraying it with chemical preservatives.

ALEX YEBOAH ATAI: ...and the spraying is meant to preserve the fruits.

COMM: What's harder is meeting EU licensing requirements like length and weight. That means using lots of chemical fertilisers - expensive, and not the kind of farming they like round here.

ALEX YEBOAH ATAI: I think that the idea of length, and sizes, in bananas are just an exaggeration of the actual matter. Because to make your bananas grow big in size and in length all that you have to do is to dump a lot of chemical fertiliser and in the next couple of months you have your big length - your big sizes and then your length. But we talk about fair trade, and fair trade has to deal with the environment and therefore natural growing things is what comes into mind - think about consumer choice. So we as a fair trade company, we believe that we have to grow our bananas in a more sustainable way.

COMM: So in future they'd like to go organic - if consumers will pay. Meantime licensing rules and ever-changing quotas constitute for Augustine a serious 'non-tariff' barrier - not exactly a tax but still a 'restriction' on trade.

AUGUSTINE ADONGO: For somebody like me who is in trade advocacy, that appears to be another barrier to trade. They're closing the doors on us. They're opening the doors with one hand, saying: we are doing away with quotas, we are removing or reducing taxes, import duties, tariffs and so on. Meanwhile with the other hand they are closing the door by bringing in quality requirements that are far beyond the capacity of local producers, especially the small-scale producers. Here I wouldn't buy a banana using a tape measure - the farmer who's growing it hasn't got a tape to be measuring. But if that's what Europe is requiring, then Europe has to make an effort to help us to understand them and help us to be able to develop that capacity up to the level that we'd be able to meet each other half way. But Ghana is still largely a rural and agricultural based country - about 70% of our people earn their living in agricultural activity. And part of this - the more, the more paying part of agricultural activity is that we've just committed to exports. So if as a result of the increase in quality requirements by Europe we lose out on our agricultural exports, what it means is that those who are currently engaged in agricultural exports are going to lose their jobs.

COMM: After all this you might be forgiven for wondering how Ghana's farmers can ever export at all. But time for a success story, and so we drive through the south of Ghana to Tema. Athena Foods makes pineapple juice. It's also had problems with non-tariff barriers but its canny US-trained manager found a way round them - so, one local producer who has captured a thriving export market.

AUGUSTINE ADONGO: So tell me, you've been doing exports to Europe for some time now, er more than a year - more than three years. Have you had any problems meeting the EU requirements - EU regulations and so on?


AUGUSTINE ADONGO: What exactly is the problem?

DR TONY MENSAH: Er, when we started, the programme was pretty good. The fruits - the analysis in Germany came out very well and it was so good that one buyer was actually using it for baby food formulation. Then we ran out of fruits. Went to Ivory Coast and with the concentrates that we made from those fruits they had high epiform residues on them.

AUGUSTINE ADONGO: This is the name of a chemical?

DR TONY MENSAH: Yes, it is a chemical -

AUGUSTINE ADONGO: And the EU has a regulation on the amount of residue


AUGUSTINE ADONGO: of this chemical that can be allowed on, on a fruit or on the, the extract of a fruit?

DR TONY MENSAH: Exactly, exactly.

AUGUSTINE ADONGO: OK. How did you overcome this problem?

DR TONY MENSAH: Er, we tried working with the...

AUGUSTINE ADONGO: The Ghana Standards Board...

DR TONY MENSAH, Managing Director, Athens Foods: The Ghana Standards Board. Er, they didn't even have the mechanism to analyse it. Then we realised that we had a big problem on our hands. While trying to resolve it we took what one may call an easy way out: we realised there was a market for organic juices and er we started adapting our plan. And this is what we did and that's what we're exporting now. Er, the EU is moving towards zero residue levels - EU's moving towards organic. It turns out organic farming - at least with pineapple and some of the vegetables that we grow and fruits we process here - the farming conditions are compatible with our rural farmers' methods of farming. So now the issue becomes: how do I encourage the rural farmers to grow more organic for me so that - I mean, I wouldn't have to worry about residue levels, just satisfy the conditions of organic fruits, organic production. Then I should have no problem with er EU because I will be where EU is trying to get.

COMM: Next stop, another success story: Farmapine on the outskirts of the capital Accra, a co-operative that helps farmers produce those tasty organic fruit.

AUGUSTINE ADONGO: Essentially Farmapine is a co-operative of farmers - small-scale farmers and exporters.

THOMAS OCRAN: What - OK, what we do is we supply the farmers with inputs to provide the quality - an ideal quality pineapple. I think if you produce a better pineapple quality, it pays.

THOMAS ADJEI: Yes, you are getting more money; at the same time you are producing more. We are expanding our farms.

COMM: But, oh dear, there's another problem: the globalised world market is fickle.

THOMAS OCRAN, Operations Manager, Farmapine: Now the farmers are producing and producing and producing and our share in the market is such that at times you have the fruits, but then the buyers will tell you: don't bring it. . These are some of the things which...

THOMAS ADJEI, Pineapple Farmer, Farmapine Co-operative: Sometimes they will ask you to bring maybe 40 tonnes of pineapple. Then at the last moment they will tell you: I will need only 20 tonnes. You see, meanwhile you have already made allocation for all these things, so this way you will be left out. And you will pay for it.

AUGUSTINE ADONGO: Why, why are they behaving like this? Why are the buyers behaving this way: they were asking for two tonnes, and eventually take only one tonne?

THOMAS OCRAN: Yeah, competition - they have competition. So where you have these multinationals, when they flood the market, you are nowhere. So, I think that has been the problem.

COMM: Boats against the current. Ghana seeing its future in exporting but somehow born ceaselessly back into the past - a past of poverty and rules that always seem loaded against it. Time for Life to take a tour of its own to find out why and to find out if the people who make and think about the rules of the world trade game have any answers. First Washington, where the World Bank has become an advocate of sustainable development through what it calls 'Fairer Trade'.

JAMES WOLFENSOHN, President, World Bank: I think there's no doubt - and I've advocated for a long time - that the trade issue is central. Er, also, the proportion of money that the developed countries are putting in to trade barriers so outweighs the amount of money that they're putting in to overseas development assistance that you only have to hear the numbers to know that you have to get the two together. In trade, for example, the developed countries spend on subsidies for agriculture 350 billion dollars a year - that's a billion dollars a day - and the amount of money put into overseas development assistance is 50 billion dollars a year. So you've got seven times the amount of money that is going for development going into just one aspect of inhibition of trade. What we want is for developing countries and the people in them to have a chance to work their own way out of poverty. And if you give them a chance to manufacture and grow but then deny them market access er then you're hypocritical.

COMM: Princeton, New Jersey: Ivy League America. On campuses across the world, some anti-globalisation protesters argue free trade harms development - remember those cheap imports. So we asked Princeton's world famous 'trade guru' if free trade is the friend or enemy of sustainable development.

PAUL KRUGMAN, Author, 'The Age of Diminished Expectations': It's not exactly a friend or an enemy, it's - to the extent it leads to economic growth it leads to some environmental pressures. Er, to the extent that it leads to economic growth it makes countries richer and more able to deal with their environmental problems. And it certainly - I think if you look on balance it's not it's not a negative, it's a slight positive.

STEVE BRADSHAW: How do you - what do you make of the critique of the anti globalisation movement and the notion that we should have - instead of having um freer trade, we should have more self-sufficiency in developing countries?

PAUL KRUGMAN: I guess I wonder if they remember what the world was like 25 years ago. See, - I'm pro-globalisation, and ultimately the reason I'm pro globalisation is I remember the utter hopelessness that we used to feel about developing countries. I mean, we used to say that developing countries was - you know, that was a joke 'cause developing countries meant that countries that don't develop. Er, and we've had successes since then - not across the board, not everywhere, not everything you want. But we've had some successes and all of the successes are associated with freer trade, with growing exports, and I just don't think - I think that people are romanticising what it was like before this, this move toward globalisation.

COMM: But can we really have free trade that would help not just the rich Old World, but developing countries too? Last stop on our tour: Brussels, from where the EU administers its subsidies and non-tariff barriers. So how does it defend them?

PASCAL LAMY, EU Trade Commissioner: I mean, if you take your example of Ghana. Ghana has, in terms of tariff barriers, 100% free access to the European Union; so no tariff barriers but, as you say, we have a number of technical barriers. They're called sort of 'non-tariff barriers' - sanitary rules, phyto-sanitary rules - which prevent, for instance, flowers, where the sort of minimum pesticide residue which we have in order to protect health in the European Union is not matched. Now, what can we do? What we can do is what we did with Kenya on flowers. We've helped Kenya, we've done the necessary transfer of know-how, and now Kenya exports flowers into - directly into English or French or Belgium retail stores because we've provided them with the necessary laboratories. So it is possible and we are concentrating our development - our technical assistance, our development aid onto things like that. But of course the small farmer er needs to sort of have access to this testing hub, and this is back to the local governance problem. They have to organise themselves so that if they produce flowers they can go to this laboratory, and there will be five or six of these for Ghana, and then it will work.

STEVE BRADSHAW: Doesn't the fact that EU nations - and the rich countries generally - subsidise their own farmers and agriculture to the tune of billions of dollars a year, stop the developing nations trading their way out of poverty by selling their own farming products?

PASCAL LAMY: It's not very fair to compare - I mean, sort of, social policies with development policies. I mean, one could also say we spend hundreds of billions of Euros on social security - yes, we do that, but does this, does this have to be compared? The real point is not about the amount of subsidies, the real point is about whether what we do is trade distorting for developing countries. And we believe the need to support our farmers. I mean, we only have sort of seven million farmers left in the European Union, which is not much and we prefer to keep them for reasons which have to do with our way of life. So how, how can we do that without creating obstacles to trade to developing countries? That's the real issue, and these old debates - from sort of 50 years ago was: Aid, Not Trade; I mean, ten years ago was: Trade, Not Aid; I think it's definitely Trade and Aid for the next 10 years to come.

COMM: Back in Ghana: Augustine's last stop on the shore of Lake Volta. Ghana's big beautiful lakes and rivers are still full of fish. A time-honoured way of preserving the catch is to smoke it, also a way of adding value for export markets. But those non-tariff barriers are a problem again. Local people tried to meet the EU's hygiene and quality rules. But the EU made the rules for smoked fish even tighter - as Augustine showed us up on the hillside.

AUGUSTINE ADONGO: This, this facility was started in 1997 and completed in 1998 and it was meant to help the women who smoke fish here to come together, to come under one roof because that's - you probably have seen in the market the way they're doing the smoking - they have a traditional method of smoking. There are three problems with that one. First of all, it wastes fuel because they are using the logs to do the smoking. Secondly, there's no consistency in the dryness of the fish and they smoke it differently - one woman does it one place, another woman does it in another place. But for exports you need some amount of consistency and also in the size of the fish. So the exporters decided that they would put up this facility and help the women to select the fishes of a certain size come and smoke it to a standard - let's say, a standard "grade" - all of them together, then they would have the consistency. This whole facility that is standing here now, small as it may look to somebody else elsewhere, took a lot of commitment on the part of the association, the exporters. They had to put in their own resources to put up this facility. They wanted a set-up where anybody who comes in can see that there's minimum hygienic conditions. And then the EU raised the standards even far above what they had set out to achieve and therefore they had to abandon the whole, the whole exercise. For the women here the consequences have been more disastrous. Unfortunately, because of the exporters the numbers have gone down. That means less fish is being shipped out from here, therefore income levels have also gone down. There's no doubt that it's an unfair situation. The first thing that you can do when you are faced with an unfair situation is to complain; you just sit back and say, 'This is an unfair situation'. The second thing is to complain and appeal to the conscience of those who are creating an unfair situation to reverse the situation (people like to call that 'please level the playing field'). The third option - which we are committed to - is to find ways to build alliances between us here, and whoever has an interest, our interest, in mind at the other end, to be able to take these issues up. So we find a way to meet the requirements half way, then we can appeal to other people to also meet us half way. That is where organisation comes in. And when we say 'organisation' I don't expect - or we don't expect the women here to, by themselves spontaneously organise themselves. That's the work of people like me, people in my organisation and similar organisations, those of us who like to call ourselves as being 'The Development Industry'. We have to make a commitment to organise our people. To help them to understand the way the market operates today; to help them to understand how the world works today; to help them to know that just by their own efforts - organised effort - they will be able to overcome some of these obstacles. And part of the work that we do in FAGE, and in our associations, is to galvanise the women to come together. Because we realised that part of the problem we have in Africa - and in the Third World generally - is that if we want to keep up with the standards then we need to do some more organisational work. We need, as we like to put it, to become 'smarter'. We do have a lot of hard work in Africa; we do have a lot of hard work in the Third World. Where the world is moving to, generally, now is towards 'smart' work. So it's not just a matter of pushing and pushing and pushing, and digging deeper and deeper into the same hole, but finding a smarter way to be able to do things. In fact, I believe, and we have the strong commitment to this, that in a couple of years' time - one year, two years' time - we'd have a facility standing here that can meet the EU requirements. Or anybody else's requirements, for that matter.

COMM: Augustine believes that, given help, the fish-smokers of Lake Volta - and many other agricultural producers in the developing world - can compete in the globalised market.

[This is an authentic posting from Young Bajan Lion (Registered User)]
This is bogus!
Author: Nana Busumuru Amoabeng
Date: 03-14 12:50 

Source: JoyFm Online

A Ghanaian newspaper, ?the Dispatch? says it has reliable information on the reasons why the former Deputy Minister for Finance, Mr. Victor Selormey, was arrested at the Kotoka International Airport on his return from a trip to the United States, about three months ago.

According to the paper, Mr. Selormey was arrested to help security agencies to retrieve $1.5 million, which he had carried from Ghana to deposit in an American bank but could not succeed owing to the stringent banking regulations operating there. American banking regulations require that an individual must have a social security number to qualify to open an account.

Alternatively, a bank account can be opened in a business name or if the business is registered in the United States. The paper further explains that commercial banks in the U S are required by law to notify the treasury of any single cash deposit into a personal account that exceeds $10,000.

The Dispatch says from the above requirements, it was therefore difficult for Mr. Selormey to deposit the amount. The American treasury notified the Federal Bureau of Investigations (FBI), which in turn notified the Ghanaian security agencies immediately Mr. Selormey boarded a Ghana-bound aircraft with the money.

?The Dispatch? quotes its sources as saying that the former Minister was intercepted on the tarmac to ensure that the $1.5 million, suspected to belong to the government is retrieved.

It is however not yet known if the money was retrieved or not but investigations continue. It would be recalled that Mr. Selormey was arrested on the tarmac at the KIA and held in custody by officials of the Bureau of National Investigations (BNI) when he arrived from the US on April 15.

Political analysts condemned the arrest, which was believed to be in connection with a report that he had transferred about $1.2 million dollars to a friend in the United States. A decision by the BNI to explain the reasons for the arrest was later rescinded due to the sensitive nature of the investigations, the paper added.


These are our men of integrity who we did not have to apprehend like common criminals. Thanks to Kwesi Pratt Jr. I hope he is following the drama.

Shame on all those involved!
Author: O.O.B
Date: 03-14 12:48 

jerry john rawlings' inconsistencies and madness!

..."According to Rawlings, Ohene Kena is not like those he helped to become millionaires, but who have turned their backs on him, and are using the money he helped them acquire, to buy people?s conscience, and are building their own image".

"Robbing Peter to pay Paul"

This manipulated and incomprehensive action is a real "day-light Robbery" against innocent Ghanaians, since rawlings is neither a credit giver nor a credit institution to help others to become millionaires.

Because it is unlawful and legally incompatible to allow a house-boy, or a watchman to kill the owner of the house ,or the landlord, and take over the house and all other belongings from the real owner as his personal property.

jerry john rawlings, explain to Ghanaians how you helped your cohorts to become millionaires ,since you`re not a financial institution!

jerry john rawlings, explain to Ghanaians why the high ranking military officers have to be killed!

General Kotei, Feli, Utuka, Air vice Marshal Yaw Boachie and many others were executed for nothing, right ?

Oyiwa, Ghanafuo

Over to you!
Shame on all those involved!
Author: O.O.B
Date: 03-14 12:47 

In as much as people are criticizing and condemning somebody`s serious drug crime, they must also remember that Politicians throughout the world are not free from scandals. Some are even more than this.

- Others deliberately condemn state corporations and throw numerous workers` destiny into disarray, and thereafter use state money to buy this same state properties for their own families. Such crimes are more than serious and also more than this cocain business, because it entails day-light robbery and theft

- Others use family members , or friends names to open bank accounts in foreign countries and re-channel state money into such accounts for their personal use.

- Others use family and friends names to open private companies and turn around to give state contracts to these non-existing companies.

- Others openly sell state properties directly for themselves and buy it very cheaper with the same money they have stolen from the state.

- Others diverts state money into their own house and turn around to say that the money has been stolen on the way.

- Others diverts the proceeds of state cocoa and other cash crops into their own accounts, and turn around to say that the ship that was assigned to transport the goods had been capsized, and all the crew were rescued, but the goods got lost in high seas, whilst there is no records to prove that.

Others use state aparatus to transport Gold and other natural resources and diverts its proceeds into their own personal accounts in foreign countries.

- Others secured loans on behalf of the state from foreign financial institutions and divert it into their own personal accounts.

- Others collect bribes from foreign companies before they assign them contracts.

- Others use state apparatus to abduct and kill their personal enemies.

- Others collects bribes from foreign head of states and promise to defend their punctured reputations for them in the international political arena.

- Others use friends names under-cover to build magnificient houses with state money

- Others are directly involve in human trafficking. They use state money to smuggle their girl friends and other relatives into foreign countries

- Others exchange blows during hot debates in Parliament and Japan as well as other Asian countries could well be sited as an example.

- A certain President in Ghana even openly beat his Vice-President to disgrace a whole country in the world of politics without impeachment.

- Others stand behind other cabinent members like Amartey Kwei to assissinate intellectuals and other opposition members.

- Others use state money to buy votes to gain entry into public offices and Parliament despite their lack of competence for the job.

- Others use state cars and other transport means to attend their own private activities and other engagements like unnecessary funerals, and holidays elsewhere.

- Others use state hotels for their private activities without paying for it.

Some politicians are simply corrupt and over-burdened with scandals.

Fingers have to be pointed to all directions!

Shameful Website!
Author: O.O.B
Date: 03-14 12:45 

On January 1993 - Rawlings sworn in as president of the Fourth Republic.

March - The two main perpetrators of the bombings were fined and sentenced to ten years' imprisonment.

The PHP, NIP and a faction of the PNC merge to form the People's Convention Party (PCP) in December that year.

November - A 20-member national security council, chaired by Kow Arkaah, was established

On Febuary 1994 - Estimated 500 people were killed in the ethnic clashes of the Northern Region between those of Konkomba and Nanumba origin. Government troops are dispatched and imposed a state of emergency in seven districts for three months. Six thousand Konkombas reportedly flee to Togo.

In March - Twelve people were reported killed at Tamale (the capital of the Northern Region) when security forces fired on Dagomba demonstrators who had allegedly attacked Konkombas.

On April - Negotiations between the ethnic groups involve in the conflict begun. It was reported that the authorities had discovered a conspiracy to overthrow the government, which involved threats to kill Quarshigah and the editors of two private newspapers. The opposition question the veracity of these claims.

May - The NPP announced its withdrawal from the conciliation discussions between the government and the opposition, due to lack of progress. The state of emergency in the Northern Region was extended.

In June - A peace agreement was signed by the seven ethnic factions involved in the fighting in the Northern Region, imposing an immediate cease-fire.

Government troops remained there and a negotiating team was established to attempt to resolve inter-ethnic differences.

On August - The state of emergency was ended as the P/NDC government announced that order has been restored.

In September - Five civilians who had allegedly conspired to overthrow the government were charged with treason.

October - There was an increase in tension in the Northern Region when further arrests were made, after several people had been killed.

November - Following a joint rally of the NPP, PNC and PCP, the parties announce that they will present a single candidate to contest the presidential election in 1996.

On February 1995 - Valued-added tax (VAT) was imposed, leading to widespread protests by opposition parties of higher percentage of VAT. They had wanted the rate to come down a bit to meet the economic standards on the ground so as to reflect the realities in the country.

In March it was again reported that about 100 people were killed as a consequence of ethnic violence in the Northern Region and a curfew was thereafter imposed.

April - A joint committee of prominent members of the Konkombas and Nanumbas was established.

May - On 11 May 1995, the peaceful "Kume Preko" march in Accra, organised by the Alliance For Change (AFC) to protest against the imposition of Value Added Tax and the high cost of living, was violently disrupted by armed men purporting to belong to the Association of CDRs. The violence resulted in the deaths of five people (four demonstrators and one alleged ACDR member). The police moved quickly to contain the violence and a number of arrests were made, although no one was subsequently charged due to a lack of evidence. Later marches organised by the AFC passed off peacefully.

In June - it was reported that the VAT was suspended and the old sales tax re-instated.

On November, a Commission of Human Rights and Administrative Justice commenced it's investigations into allegations of corruption on the part of government ministers and civil servants.

In January 1996 - Opposition parties demand that Rawlings resign following allegations that he had assaulted Vice-President Arkaah during a meeting. International Press across Europe and Radio Stations used it as an entertaiment instrument and made mockery about Ghana because it was something very unusual to have happened.

On February - three journalists who had published a report alleging the government's complicity in a case of drug trafficking involving a Ghanaian diplomat the Swiss were arraigned.

The NCP and the PCP also merge to form the People's Convention Party (PCP), which later disbanded. Six people were reported killed in the Techiman area following a dispute over tribal status and authority.

May - A violent confrontation between two Muslim factions in Atebubu led to one death and damage to property.

August - The NPP and PCP announced their formation of an electoral alliance, to be known as the Great Alliance. The NCP was to support the NDC.

A demonstration was organised by taxi-drivers.

On September - Rawlings was nominated as presidential candidate of the NDC.

October - At least twenty people were wounded in clashes between the NDC and NPP militant supporters in Tamale and Kibi.

In November a network of Domestic Election Observers, comprising 25 groups, was created to oversee the December elections.

December - Presidential and parliamentary elections took place on 7 December. Rawlings and the NDC were re-elected, despite reducing its majority of seats.

International observers declared that the elections had been conducted fairly and that 76.8% of the electorate had voted. Fifteen people were injured in clashes between NDC and opposition supporters in Bimbilla, following the announcement of the election results.

1997 January - Rawlings is sworn in as President on 7 January.

March - A new Council of Ministers were appointed, although ten members of the previous administration remained in office.

The Minister of Finance announced the re-introduction of VAT two years after widespread unrest led to its withdrawal.

On May the head of the US Information Service was expelled from Ghana because of "activities unacceptable from a diplomat?. It was reported on the international press that he had allegedly become personally involved in the criminal libel case brought by the Rawlings government against the editors of the Free Press for publishing an article accusing government members of drug trafficking. In what was assumed to be a retaliatory measure, the US authorities expel a Ghanaian diplomat in June.

On August - Serious disturbances in Wenchi District of Brong-Ahafo Region resulted in the deaths of three people. The troubles were a result of a land dispute between the chiefs of the Brohani and Menji tribes.

October - On 30 October 1997 in a slum area of Accra in Nima, one youth was killed (though some press reports claimed that two were killed) when police fired on a crowd of rioters protesting at the failure of authorities to collect their refuse. After the riot the Interior Minister testified before Parliament that the lives of the police were threatened before they resorted to the use of arms.

November - More than 2,000 were arrested in the diamond-mining town of Akwatia in the Eastern Region in a joint police and military operation, following clashes between police and illegal diamond traders. On 30 November 1997 a policeman shot and killed a taxibus (trotro) driver's assistant after a traffic violation. The driver was later caught and beaten by army and police personnel. The policeman responsible for the killing was jailed pending immediate and full-scale investigations. The police commander denounced the action regardless of whether a traffic violation had been committed. The country was in deed was in a very turbulent situation and law and order was virtually absent. Freedom, Liberty and Justice as expressed in the national coat of arms was obviously alien to those in authority during that P/NDC bogus regime

1998 January - four people were killed and 26 wounded in a dispute between rival Moslem Sects over the ownership of a graveyard in the western town of Wenchi. The trouble started when the Tijaniyyas allegedly tried to stop members of the Al-Suna sect from burying dead members of their sect. Police are reported to have made more than 60 arrests after members of the orthodox Tijaniya Moslem group attacked members of the Al-Suna sect with guns and machetes, killing four of them. By mid-January order had returned but the area remained tense. The regional crime officer said a screening exercise would be carried out to see who would be brought to trial.

On 23 January the former President Hilla Limann died. He died in an abject poverty but what are Ghanaians seeing now Rawlings? This thief and his cohorts had looted the country to acquire so many riches and they still keep on insulting the integrity of the citizens and continue to hoot over them with their ill- gotten wealth.

Ghanaians saw Rawlings in 1979 as a very poor man who could not even settle his Yokogari food bills and was then begging from his listeners on the crowed for a common corn to satisfy his hunger

and now this is how he looks like as a wealthy man. He also wears Kente to present himself like an achiever, but everybody knows in reality that his regime was a failure and his academic records were also a failure

May - Three people were reported to have been shot dead by police at Aflao according to Ghanaian radio. The first one was shot when police used their guns in an attempt to ward off a group who turned on police who had come to the aid of a woman they were attacking. The group then caught up with the police, and attacked one. The police later opened fire when the group began attacking the police station,killing two more members of the group.

Ghanaians only saw a bloody situation devoid of freedom and Justice under Jerry John Rawlings? terror regime. It was so bloody that even out of shame he proceeded to sign a P/NDC manifesto perversely with blood.

July - Two journalists were jailed for one month each in for contempt in connection with an article written about President Rawling's wife Nana Konadu Agyeman.

The Interior Minister said that the cases of those killed during the 11 May 1995 demonstration organised by the Alliance for Change have been closed because "no clear point of responsibility can be identified" regarding the killing of 4 civilians at the demonstration. The Alliance for Change expressed shock at this statement.

October - There was a violent demonstration by students at the University of Science and Technology (UST) in Kumasi, which resulted in the university being closed. On 5 October however it opened again and the registration of continuing and fresh students proceeded smoothly. It was reported that the campus was calm.

1999 January - On 13 January, a farmer was fatally shot and 12 policemen injured during a riot at Juaso, outside of Kumasi in the Ashanti Region. A former chief held a year- end party for his supporters although the police had prohibited the gathering. The 36-year- old farmer was reportedly hit by a warning shot fired by the police. The ex-chief and more than 60 townspeople were arrested by a joint police and military team in connection with the riot

February - A high court sentenced four people to death at the end of a long running treason trial. A fifth was discharged and acquitted. The prosecution said the accused, led by two fugitive army officers had planned to overthrow the government by force in September 1994. The credibility of such numerous attempted coups still remains questionable because Rawlings said ?Governments can create its own evidence?.

On 14 February, police fired live bullets indiscriminately into a Konkomba market crowd, while attempting to stop looting, killing a 15-year-old boy and injuring two other persons.

On 25 February, the King of the Ashanti, King Otumfuo Opoku Ware II died. The Asante are Ghana's largest ethnic group. There followed consultative meetings between the Ashanti Queen Mother and the Kumasi Traditional Council. Barima Kwaku Dua, the youngest son of the Queen Mother, was nominated as successor and crowned King Otumfuo Osei Tutu II. He was 'enstooled' in Kumasi, the Ashanti capital on 26 April.

June ? The then NPP Minority group in Parliament tabled a motion to challenge the level of coverage of political parties by the state-owned media.

On 24 June, an employee of the National Security Council allegedly shot and killed an agricultural officer following a traffic dispute near Abelemkpe in Accra. The suspect, who reported having shot an armed robber, was arrested and released on bail. The agricultural officer had turned an armed robber on the lenses of Rawlings security men so that the accused could be set free .The case was ongoing and the outcome still remain unknown.

July - A new party the National Reform Party (NRP) received it final registration certificate. The party was formed by defectors from the NDC

August - Students demonstrated in Accra and Kumasi over fees and general hardship. Police use tear gas, rubber bullets and water canons against the students in Accra. On 12 August, the Deputy Superintendent of Police allegedly shot a vendor at Soe, near Bolgatanga in the Upper East Region, in a dispute over the sitting of a kiosk. The vendor died 3 days later. A stray bullet fired by police during the confrontation injured one other person. The police were investigating. The Inspector General of Police (IGP) attended the vendor's funeral.

On August 19, a policeman allegedly shot and killed a passenger in a truck after the driver refused to stop when signalled to do so in Winneba in the Central Region. The policeman reportedly was on the lookout for armed robbers and tried to deflate the truck's tires with an AK-47, killing the victim by mistake. The incident was under investigation.

September - On 25 September, a policeman reportedly shot and killed a driver at his residence in Korpeyia. The police maintained that the policeman shot him in self-defence.

November - On 13 November a plainclothes police inspector shot and killed the driver of a Timber truck at a police barricade in Barekese. Initial reports stated that the man was shot Accidentally in a scuffle with the police, but eyewitnesses reported that there was no scuffle and the driver was killed deliberately. Police authorities suspended the inspector immediately and initiated an investigation that was underway at year's end.

There was a serious disturbance in November 1999 during a football game between an Islamic and Methodist middle school. Property belonging to Muslims in the town of Agona Nyakrom, was destroyed. Youths attacked Muslims in this area including the headmaster of the Islamic school, who was badly beaten. Five people were shot during these disturbances. Newspapers report that as a result of this incident, large numbers of Muslims had moved out of the area

December - On 24 December 24, a patrol team of police and military personnel shot and killed two passengers in a taxi in Tema. The taxi driver reportedly had failed to stop at a checkpoint. The police say they fired warning shots, but witnesses said there were more than 10 bullet holes in the vehicle and the tires were flat from the shooting. At year's end, there had been no further action.

2000 January - Mr Cabral Blay Amihere the editor of the Independent newspaper was detained by the military, after publishing an article which said that soldiers had refused to obey an order relating to march, and was held overnight on 13/14 January 2000. In light of this incident, the Ghana Journalist Association held a meeting to discuss the intimidation of journalists, and urged that only Constitutional methods be used to seek redress against journalists who print articles where the truth is disputed.

December - Presidential and Parliamentary elections took place on 7 December 2000. Opposition leader John Kufuor polled 48.4% of the vote, not enough to win the first round. John Atta Mills scored 44.8% with the five other parties scooping the remaining votes. In parallel parliamentary elections, the NPP achieved a majority taking 101 seats. NDC took 92. The Presidential run-off between Kufuor and Mills took place on 28 December 2000. Kufuor won taking 57% of the votes cast, and he was formally sworn in as President of Ghana on 7 January 2001.

2001 February - Petrol prices rose by 60% following the NPP government's decision to remove Fuel subsidies.

May - Over 130 people were killed in Accra football stadium following a stampede. Police were criticised for their handling of crowd trouble, which preceded the stampede. There were riots against the police following this tragedy. The atrocities of the police under Rawlings regime as a result of deliberately poor training to defend the Sakabo revolution continued to had it?s price even in the post Rawlings era. And that prompted the NPP government to call for major reforms in the police to suit modern times.

December - The former deputy Finance Minister Victor Selormey was sentenced to an 8-year prison term for his part in fraud and corruption during his period in office.

2002 March - The incumbent king Ya-Na Yakubu Andani, was killed, together with 28 of his followers, It was also reported that Jerry John Rawlings was there given some warnings to the King prior to that fatal national strategy. So what made him travel there in the first place to issue those statements, and what did he know?

With a critical look at Rawlings socialist inclination, his admiration for nkrumaism and the killing history as well as their hatred for chieftaincy institutions with that believe, it leaves Ghanaians to remain a pause for a second thought. It looks also like an experiment for something. The same ways as innocent women were dying prior to 2000 elections.

Ladies and Gentlemen, compare and contrast and judge for yourselves if Rawlings has any moral right to accuse others for being intimidated. Probably Rawlings does not understand the word intimidation either, or he was soliloquizing to himself in reflections from his own brutal past

Also, as dictatorial as their terror regime was and its effects in the immediate aftermath of 2001 and 2002, the P/NDC has no moral right to criticize the Eyadema's regime in addition to the political uprising in Togo, because their regime was the longest and the worst in Ghana?s political history since independence

jerry john rawlings does not deserve to be awarded a doctorate degree with this kind of poor record. And if this nonsense does not stop, a time will come that somebody again will emerge to put jerry john rawlings name on Ashanti Gold fields (as rawlings Gold fields)

It is in this vain that jerry john rawlings has no moral right whatsoever for any Wahala movement !
Shameful Website!
Author: O.O.B
Date: 03-14 12:44 

rawlings' past records and sufferings

Mo gye gye Bini so ma no bon paa !

Regarding a record like this, jerry john rawlings has done nothing good to be accorded with humility. A criminal of his sort need to go to prison rather than trying to award him the dignity of reconciliation with the nation.

These are some of the reasons why jerry john rawlings should not be entertained with presidential privilages and does not deserve to be honoured in any manner.

Some elements are only spinning here to protect the killer ,(Honorary Doctorate of Murders)jerry john rawlings.

Hey !

Is any high institution out there to award me also with a doctorate degree in Toilets ?

Ghana's very difficult moments and transition.

In 1975 the NRC was replaced by the Supreme Military Council (SMC) also led by I.K.Acheampong.

1976 Acheampong announces plans for a return to civilian rule in the form of union government.

1978 A referendum was held in favour of union government

On 5 July, Acheampong's deputy, General Akuffo assumes power in a bloodless coup.

On January 1979 - The ban on party politics was lifted and 16 new parties were subsequently registered.

May - A coup staged by junior officers of the armed forces, led by Flt-Lt Jerry Rawlings, fails on 15 May and he was subsequently imprisoned.

June - Following his release by other officers, Rawlings seizes power on 4 June with the help of Capt. Boakye Djan, Maj. Mensah Poku and others and establishes an Armed Forces Revolutionary Council (AFRC). Acheampong, Akuffo, Afrifa and other senior officers are convicted on charges of corruption and executed. But Rawlings still leaves unpunished till today with the same crime which is even worse than those committed by Acheampong, Akuffo, and Afrifa combine together, and is enjoying his stolen booty.

On 18 June, a general election took place, contested by 5 parties and won by Dr Hilla Limann's People's National Party (PNP), which forms a coalition government with the United National Convention (UNC).

September - Dr Limann was inaugurated as President.

1980 September - Limann announced an amnesty for all political exiles and refugees except those sentenced in absentia by the AFRC. Most prisoners sentenced by special courts during the term of the AFRC were freed in 1980 after applying to the courts for reconsideration of their convictions. However, at the end of 1981, at least 27 such prisoners were still being held.

October - The government announced that a number of agricultural development schemes established by AFRC are being turned into camps for training active subversives. About 10 people were questioned and detained, one of them being Kojo Tsikata, a former army Captain and close associate of Rawlings. Others say he's Rawlings uncle but how close the family is, I don't know.

March & May 1980 and February 1981 - Several attempts to seize power by members of the armed forces were reported.

1981- Throughout the year, prisoners convicted of economic crimes during the rule of the AFRC tried to get their sentences revoked by the courts and some prison sentences were quashed. However, in November, the Supreme Court rejects a writ submitted by B S K Kwakye, former Inspector General of Police, alleging that his 25-year prison sentence imposed in his absence by the AFRC was unlawful. The PNP government swiftly orders the re-arrest of all those sentenced by the AFRC and its courts, who had been released since the return to civilian rule in September 1979. This action was probably conducted out of fear with regards to the numerous attempts to seize power back from the PNP by members of the armed forces.

December - On 31 December, Rawlings seizes power for the second time from kwame nkruma's PNP/CPP headed by Dr.Hilla Limann. So why was Rawlings trying to glorify kwame nkruma's name with a Science and Technology University in Kumasi, as well as a re- burial and re-naming of a circle / Round About in Accra to that other dictator ?

Other?s explaining that Rawlings was trying to be more nkrumaist than the official nkrumaist parties in existence in order to win more followers. But if he is nkrumaist as some claim why did he overthrow his descendant PNP/CPP instead of joining them to put across his desired reforms?

And why the re-naming of the University Science and Technology to this dictator on Ashanti grounds to infuriate Ashantis?

Is Rawlings a true democratic champion in Ghana who first listens to the willingness of the people before making any major decisions affecting the country?

If his action was a mere demonstration of power to enrage other people, then Rawlings is very ignorant and has no idea in democratic governance and mechanisms.

He abolishes the constitution and assumes chairmanship of a Provisional National Defence Council (PNDC). Any true democrat would not have dismissed a constitution. Limann and other prominent members of the PNP were imprisoned or placed in preventative detention like kwame nkruma also did to his adversaries.

1982 March - On 2 March, the PNDC issues a Preventative Custody Law (PNDCL 4) naming 492 persons to be taken into preventative custody for an indefinite period. A number were later released during the year, but by the end of 1982, at least 22 of the people named in PNDCL 4 were still detained without trial.

The socialist wing of People's Defence Committees (PDCs) replaced the official constitutional democratic City and district councils, in order to create mass participation at local level in the revolution. As in communism and in socialism.

Military personnel staged an abortive coup during that month.

On 30 June, 3 High Court judges and a retired army major were abducted from their homes and shot. Although the commission of inquiry is still in progress at the end of the year, 5 people had already been charged with murder and complicity to murder.

The national Anthem states:

".........and help us to resist oppressor rule with all our heart and might forever more....."

But the illegal regime of which this tune was being plaid for on its every nationwide broadcast and major occasion was the one oppressing the people it has pledge to protect. Ghanaians still wonder why the national anthem composed by Philip Gbeho was not abolished. Probably, Rawlings did not understand the verses because of his Ordinary Level of education.

The national coat of arms also state:

"Freedom, Liberty and Justice"

But freedom and liberty was denied to the people and it became totally alien to Ghanaians under that brutal regime.

Justice was the first thing the Rawlings PNDC crushed. The murder of the three high court judges and the retired army officer by members of the regime, its destruction and anger towards the Bar Association and the preventive detention practises was a manifest of absence of Justice. May be Rawlings did not understand the implication of his actions either.

November - On 23 November, soldiers staged a coup attempt, suppressed by PNDC troops. Sgt Aloga Akata-Pore (a member of the PNDC) was arrested and detained.

In 1983, the final report of the Special Investigation Board appointed to investigate the murders of the three High Court judges and former army officer was issued on 30 March, recommending the prosecution of ten people on charges of murder or conspiracy to murder. The ten included Joachim Amartey Kwei and Aloga Akata-Pore (former members of the PNDC) and ex-Captain Kojo Tsikata, the Head of Security and Special Advisor to the PNDC. A special Adjudicator states that there was insufficient evidence to prosecute five of them, including Tsikata and Akata-Pore.

Former President, Hilla Limann and the former Vice-President Dr.De Graft Johnson were released on bail by the end of the year.

February & March - Minor attempts to overthrow the government were made.

May - University students engaged in violent protests. The PNDC close the universities and turn them into training schools for revolutionary cadres. Why socialist revolutionary activities on University campus?

June - On 19 June, military exiles from Togo, led by Sergeant Malik, infiltrated Accra, but troops loyal to the PNDC suppress the coup. Hundreds of people were detained following the attempted coup either for their suspected involvement or because they had welcomed the apparent overthrow of the PNDC. Three representatives of the "Free Press" newspaper, which had frequently criticised the government, were also arrested under PNDC Law 42.

In one of his boom speeches to enrage the ruling NPP government and Ghanaians on judicial matters in the aftermath of handing over during the last legislative period once said, ?Governments can make its own evidence".

Probably all these were intentionally designed and staged to get more enemies killed in the trap, because the statement above signifies a lot.

August - The perpetrators of the coup attempts of November 1982 and June 1983 were put on trial. Four were executed on 13 August.

In 1984, three leading conspirators who had been put on trial were executed in March. The three representatives of the Free Press were released. The universities were re-opened and in December, PDCs were redesigned Committees for the Defence of the Revolution (CDR).

The right of habeas corpus against detention under PNDC Law 4 was removed.

1985 February - A number of alleged plotters were arrested in Kumasi and accused of planning to assassinate Rawlings. Alhaji Abbas and others escaped from the country. Later in February, a coup plot was detected in the army and two Majors and three Sergeants were tried.

May - Five conspirators allegedly linked to dissidents in Togo were executed.

In 1986, a number of people were tried for their involvement in a conspiracy to overthrow the government by dissident Ghanaians, and several death sentences were subsequently carried out.

In August, Victor Owusu, leader of the disbanded Popular Front Party (PFP), was arrested for alleged subversion.

Rawlings own statement that,"Government can make its own evidence" here signifies a lot to Ghanaians.

Victor Owusu was made to appear on national television in disgrace with a tortured mind. Many Ghanaians wept openly upon seeing that but who could voice it out under the banner of a gun? There was total culture of silence and freedom of expression was abominable.

1987. In January, 340 prisoners were released, yet the PNDC announces further arrests in connection with an alleged conspiracy to overthrow the government and in November more arrests were made, including former officials of the PNDC.

In 1988 the then three universities were closed for four months following renewed student unrest.

In January 1989, the student loan scheme provoked considerable student discontent, and newspaper and magazine licences became subject to review under new legislation in March.

On 24 September, it was alleged that Maj. Courage Quarshigah, former commander of the military police, together with four other members of the security forces, conspired to assassinate Rawlings and overthrow the government. A number of arrests were made and Flt-Lt William Kofi Domie died in detention on 29 September. He had allegedly hanged himself. That was the official version. In January 1990, five further arrests were made in relation to the alleged coup.(The plot was never proven and Courage Quashiega was released by mid-1992.)

On 1990 there was increasing demand for an end to the ban on political activity and association. In July, a national commission for democracy (NCD) was established to review Ghana's political and economic furore through regional debate, despite criticism from the new Movement for Freedom and Justice (MFJ).

On 30 December, Rawlings announces proposals for the establishment of a Constitution by the end of 1991.

1991. On 10 May, the PNDC endorsed the restoration of a multi-party system. However, it was emphasised that the formation of political associations remains prohibited. An alliance of opposition movements, human rights organisations and trade unions, known as the Co-ordinating Committee of Democratic Forces in Ghana (CCDFG) demanded that a constitutional conference be convened to determine a schedule for transition to democracy. Rawlings announces that presidential and legislative elections will take place in late 1992.

December - Rawlings orders the arrest of the Secretary General of the MFJ, John Ndebugre, for allegedly failing to stand when the national anthem was played.

Ndebugre in his action was probably demonstrating to Ghanaians that Rawlings as a leader was even not complying with the verses of the theme so how much more an ordinary citizen of the State.

An Interim National Electoral Commission (INEC) assumed the functions of the NCD.

1992 April - A national referendum was held on 28 April, and the adoption of the draft constitution was approved by 92% of the votes cast.

May - Legislation was introduced to end the ban on political association, imposed in 1981. Political parties were required to apply to the INEC for legal recognition.

21 former organisations remain proscribed and emergent parties were not permitted to use the names or slogans of these organisations.

June - Six opposition groups obtain legal status and a coalition of pro-government Organisations, the National Democratic Congress (NDC), was formed to contest the elections on behalf of the PNDC. The Eagle, or Eagle, Party refuses to join the coalition, although they later did so, together with the National Convention Party (NCP).

September - Rawlings retired for the second time from the armed forces (because members of the AFRC were retired by the Liman PNP administration) and was nominated as the presidential candidate of the NDC minus P. This was to be contested by candidates of the People's Heritage Party (PHP), the National Independence Party (NIP), the People's National Convention (PNC) which nominated Dr Hilla Limann, and the New Patriotic Party (NPP). Prior to the election there were reports of violence between NPP and NDC supporters.

October - The legislation, which permitted indefinite detention without trial, was repealed.

November - The presidential election took place on 3 November and Rawlings was declared the winner with over 50% of the votes cast. Although Commonwealth observers deem the conduct of the elections to be free and fair, the NPP disagreed with a stolen verdict because of some massive irregularities reported. But the results were left to stand.

A curfew was imposed in Kumasi following riots in which opposition supporters killed an NDC ward chairman. Explosives were detonated in Accra and Tema. A prominent member of the PHP and opposition supporters was detained in Connection with the bombings.

December - On 29 December, the legislative elections were boycotted by the opposition parties on account of the alleged electoral fraud of the previous month.

The NDC therefore received the majority of seats. Only 29% of the electorate voted. The result would have been declared illegal in any democratic country as a result of the lower turn out which was even far less than 50 % of registered eligible voters. But the result was again left to stand.
Shameful website
Author: O.O.B
Date: 03-14 12:43 

Government should Probe rawlings regime!

Talk is very cheap, you hypocrite.

rawlings is yet to account for the money he collected from the house cleaning exercise in the early days of his highway illegal regime

Probity and accountability were the PNDC?s main slogan, but in the end the regime failed to live by its substance.

In 1983 rawlings P/NDC regime launched the Economic Recovery Program (ERP) under the guidance of the World Bank and the IMF. The overriding purpose of the ERP was to reduce Ghana's debts and to improve its trading position in the global economy. The stated objectives of the program focused on restoring economic productivity at minimum cost to the government and included the following policies:

1. - lowering inflation through stringent fiscal, monetary, and trade policies;

2. - increasing the flow of foreign exchange into Ghana and directing it to priority sectors;

3. - restructuring the country's economic institutions;

4. - restoring production incentives; rehabilitating infrastructure to enhance conditions for the production and export of goods;

4. - and, finally, increasing the availability of essential consumer goods. In short, the government hoped to create an economic climate conducive to the generation of capital.

The ERP was carried out in roughly three phases.

Beginning in 1983, the P/NDC focused on reducing its expenditures while creating incentives for private production.

Initial expenditure cuts and improved tax collection was said to have brought the budget deficit down from 6.3 percent of GDP in 1982 to 0.1 percent by 1986, relieving government pressure on the banking system, while a series of cedi devaluations boosted export activity.

During the second phase, which lasted from 1987 to 1989, it was said that the government moved to divest itself of many assets through privatization and to institute radical foreign exchange reforms to devalue the cedi further.

Although privatization was sluggish, the hard-currency black market was nearly eliminated with the introduction of foreign exchange bureaus in 1988.

In the ERP's third phase, it was reported that the government have intensified monetary reforms and reduced private corporate taxes to boost private-sector growth.

By the end of 1991, it was reported that ERP efforts had improved the country's international financial reputation because of its ability to make loan repayments (although not wipe out foreign debt) and its first entry onto the international capital market in almost two decades.

Critics maintained, however, that the ERP had failed to bring about a fundamental transformation of the economy, which still relied on income earned from cocoa and other agricultural commodities.

Critics also contended that many Ghanaians had seemed few, if any, benefits from the program. Because economy that does not produce jobs nor create wealth and had no positive impact on the citizens could not be regarded as a success story.

In addition to its focus on stabilizing the country's financial structure, the ERP also aimed to promote production, especially in the export sectors.

In 1986 it was reported that the government had began to rebuild infrastructure through a US$4.2 billion program, more than half of which was provided by external sources. This amount was divided roughly equally among infrastructure repair, energy imports (oil for machinery), and export industries.

Increased imports financed by the IMF, the World Bank, and other sources made possible the rehabilitation and repair of some key parts of the infrastructure through the supply of spare parts and inputs for industry, mining, utilities, and agriculture.

Although the ERP was geared primarily toward restoring the country's international economic standing, it came under popular criticism inside the country for ignoring the plight of those not involved in the export sector.

The overwhelming shift in resources was toward cocoa rehabilitation and other export sectors, not toward food production. Government employees, especially those in state enterprises, were actively targeted, and many lost their jobs.

Farmers suffered as the percentage of the total budget devoted to agriculture fell from 10 percent in 1983 to 4.2 percent in 1986 and to 3.5 percent in 1988, excluding foreign aid projects.

Although cocoa contributed less to Ghana's GDP than food crops, cocoa nonetheless received 9 percent of capital expenditures in the late 1980s; at the same time it received roughly 67 percent of recurrent agricultural expenditures because of its export value.

In response to criticism of such policies, the P/NDC government initiated the US$85 million Program of Action to Mitigate the Social Costs of Adjustment (PAMSCAD).

Beginning in 1988, the program was supposed to create 40,000 jobs over a two-year period. It was aimed at the poorest individuals, small-scale miners and artisans in particular, and communities were to be helped to implement labour intensive self-help projects.

As part of PAMSCAD, 10 billion was allocated in the 1993 budget for the rehabilitation and development of rural and urban social infrastructure. The new program, organized through PAMSCAD and the new district assemblies, was designed to focus on improving water supply, sanitation, primary education, and health care.

An additional ?51 billion was set aside for redeployment and End-of- Service Benefits for those who had lost their jobs in civil service and non-state reorganizations. But it seems it was all noise making, because the citizens were still suffering with help coming from virtually nowhere.

In the early 1990s, the government was committed to continuing the policies of the ERP. New agreements were concluded with the World Bank to continue credit arrangements on condition that the country review and revise its various economic laws and regulations and support private sector development. In particular, the P/NDC government agreed to revise or to repeal existing laws and regulations affecting private investment that undermine the spirit of deregulation, economic liberalization, and exchange rate reforms.

The P/NDC also agreed to develop and to strengthen the institutional framework that would facilitate private investment.

Key priorities for 1992 and afterward included giving new impetus to state enterprise reform, broadening the scope of banking-sector reforms, liberalizing the administrative framework,and strengthening public-sector management. Basic education and primary Health-care services were to receive attention over the long term as well.

There is a saying that

"the end justify the means", but what was the result as at 2001 before the P/NDC left the scene and handed over its administration?

You are your own witness to the answer.



Major policies of the ERP and conditions of IMF funding were that the budget deficit be reduced and that resources be directed from recurrent to capital spending.

Consequently, it was said that the P/NDC achieved a budget surplus each year between 1986 and 1989 and simultaneously boosted the percentage of spending for development projects.

During the mid-1980s, budget deficits as a percentage of GDP consistently declined, falling from 4.7 percent in 1982 to 2.7 percent in 1983 to 0.3 percent in 1987.

To accomplish this, it was said that the P/NDC were to cut spending and reversed its budgetary priorities, raising capital investment at the expense of increased current consumption in order to promote future growth.

The P/NDC was said to have allocated 62 percent of the budget to physical infrastructure and about 33 percent to the country's productive sector. At the same time, spending on social programs, including health, education, and welfare, declined drastically to between 4.7 and 5 percent.

As a percentage of GDP, expenditures on health care fell from 1.2 percent in 1970 to 0.26 percent in 1980-83; during the same period, spending on education dropped from 3.9 percent to 0.85 percent.



The 1993 budget, consistent with ERP policies and objectives, aimed to stimulate private-sector growth through lowering taxes on commerce and corporations and by internally balancing accounts. The previous budget was said to have reduced the tax rate for commerce, printing, and publishing businesses from 50 percent to 35 percent, bringing these sectors into line with agriculture, manufacturing, real estate, construction, and services, the taxes on which were cut in 1991.


The tax rate was said to have reduced from 50 percent to 45 percent to encourage more lending and better terms for borrowers and to reduce the 8 percent to 9 percent gap between deposit and lending rates of interest.

It was also reported that the P/NDC had reduced the withholding tax on dividends from 15 percent to 10 percent, in line with 1991 cuts from 30 percent. The annual standard personal exemption for individual taxpayers was set at 150,000(US$380), up from the previous 126,000.

This figure reflected a 19 percent increase, 1 percent above the country?s inflation the previous year. The top marginal rate of tax was raised from 25 percent to 35 percent, payable on earnings over 14 million, compared with the previous level of 3 million.

Finally, import taxes were said to have been reduced or abolished, including duties and sales taxes on all building materials. The super sales tax on luxury goods, introduced in 1990, was also said to have been abolished. A maximum rate of 10 percent was set on such imports.

Tax evasion and corruption, both of which are rampant throughout Ghana, severely affected the P/NDC ability to collect taxes in all categories.

In December 1993, Parliament passed the Serious Fraud Office Bill. This act empowered the fraud office to investigate fraud and embezzlement crimes against the state. Despite this action, it is unlikely that the authorities will be able to stop tax evasion or other white collar crimes anytime soon , because those at the top (thus the kind of convicted criminals like Kwame Preprah and Solermy) were themselves corrupt with immunity privilages.

Reform of the tax base and prudent fiscal management contributed to budget surpluses and dramatically reduced government recourse to the banking sector.

By the early 1990s, nonetheless, the country still relied heavily on external grants to achieve its twin goals of running balanced budgets and increasing necessary capital expenditures. Domestic wealth creation was virtually absent, because the cocoa and other resources could have generated local incomes had been used to secure loans already, most of which are payable in the next 50 years. Debts cancellation with HIPC status was the only option for a releave , yet the P/NDC remained adamant, since its would have been considered as failure on the part of its leader.

Moreover, compared with the rest of sub-Saharan Africa, total government revenue as a proportion of GDP continued to be relatively low. It was less than 16 percent in 1990 (including grants), compared with an average of 19 percent for sub-Saharan Africa as a whole. In 1993, revenue raising efforts aimed to secure income equivalent to 22.2 percent of GDP.

By 1992 the P/NDC financial position had weakened.

From 1986 to 1991,P/NDC finances were claimed to be in surplus. In 1992, however, tax receipts from all sources of revenue were below projected levels, and with national elections in view, the P/NDC relaxed its tight controls on spending.

Despite inclusion of foreign funding as a source of revenue, the deficit for 1992 was estimated at 177 billion but fell to 119 billion in 1993. To rectify the situation, the P/NDC government proposed to raise taxes on gasoline, kerosene, diesel fuel, and liquefied petroleum gas by as much as 60 percent.


State-owned enterprises in Ghana date to the colonial period and especially to the post-World War II era. For example, the British organized a number of public utilities, such as water, electricity, postal and telegraph services, rail and road networks, and bus services.

To foster exports of coffee, palm kernels, and cocoa, the Agricultural Produce Marketing Board was founded in 1949. In addition, the colonial government established the Industrial Development Corporation and the Agricultural Development Corporation to promote industries and agriculture.

In the mid 1970s , the National Redemption Council under I. K. Acheampong also emphasized state enterprises. The Acheampong government established a number of new enterprises and partly or wholly nationalized a number of foreign-owned companies, including the Ashanti Goldfields Corporation and Consolidated African Selection Trust.

Intermittent efforts to improve performance and efficiency often led to the transferral of duties and functions to alternative state bodies but not to the wholesale privatization of ownership rights and assets.

By the 1980s, STATE OWNED ENTERPRISES were held to blame for the economy's general condition. In particular, many were heavily subsidized and were draining much of the country's domestic loan capital. Under pressure from the WORLD BANK and in accordance with the principles of the ERP, in 1984 the government began to sell state enterprises to private investors, and it initiated the State Owned Enterprise Reform Program in 1988.

In 1984 there were 235 state enterprises in Ghana. The P/NDC regime announced that 22 sensitive enterprises would not be sold, including major utilities as well as TRANSPORT, COCOA, and MINING ENTERPRISES.

In 1988, 32 were put up for sale, followed by a further 44 in 1990 under what was termed the Divestiture Implementation Committee.

By December 1990, 34 enterprises had been either partially or totally divested. 4 were sold outright, a further 8 were partially sold through share issues, and twenty-two were liquidated.

Divestiture of 15 additional enterprises was also underway, and by 1992 plans were afoot to privatize some of the nation's banks.

Joint ventures were set up for four enterprises, including two STATE MINING COMPANIES, PRESTEA GOLDFIELDS and GHANA CONSOLIDATED DIAMONDS.

In 1992 the Divestiture Implementation Committee considered resource-pooling programs to enable smaller domestic investors to buy up state enterprises. Such pooling would accelerate the program, but more importantly, it would enable the Provisional National Defence Council (PNDC) to deflect charges that it was auctioning off the nation's assets to foreigners.

The P/NDC regime also introduced a performance monitoring and evaluation system to improve state enterprise productivity and efficiency as well as to provide incentives for strong performers and disincentives for weak performers.

By 1989 fifteen enterprises had responded positively, turning a combined pre-tax loss of 418 million from the previous year into pre-tax profits of 19 billion, following a 9 percent cut in costs and a 30 percent increase in sales.

In early 1992, the chairman of the State Enterprises Commission announced that the government would pass legislation requiring state-owned enterprises to register as limited liability companies by 1993 to stimulate competition and to improve their performances.


During the 1980s, per capita income rose slightly but was overshadowed by the increased cost of living. Per capita income climbed from the decade low of US$340 in 1983 to US$400 by 1988 because of the devaluation of the cedi and rising producer prices.

The same factors, however, worked to increase consumer prices fourfold from 1985 to 1988.

This trend continued throughout the early 1990s as consumer prices rose from 393.2 in 1990 to 634.7 in 1993 based on a 1985 price index of 100.


Real wages and salaries are estimated to have fallen by an enormous 83 percent between 1975 and 1983 and to have continued to fall through 1989, forcing many workers to seek additional sources of income.

The level of real wages reached in 1988 was less than half that attained in the mid-1970s; nevertheless, the government was committed under the ERP to holding down inflation and hence, wages.

In the 1990 budget, the government linked pay increases to productivity, inflation, and companies' ability to pay. With some exceptions, notably a one-time allowance for civil servants to compensate for increased fuel and transport costs in 1990, public sector wages increased roughly in line with projected inflation in 1989, 1990, and 1991; however, in 1992, the government, which had scheduled elections late in the year, granted a salary increase to public-sector workers.

Although there have not been further data available for the private sector, wage increases under collective bargaining arrangements appeared to have been relatively modest.

Although increases in the minimum daily wage under the PNDC appear spectacular, they were linked to the steady devaluation of the cedi and have not overcome a constant erosion of worker purchasing power.

Beginning in April 1984, the P/NDC regime increased the minimum daily wage to 35, then to 70 in January 1985, 90 in January 1986, and 122 in 1987.

In March 1990, the minimum wage was raised to 218, and by August 1991, it had risen to 460, an increase of 111 percent as agreed to by the government, the Trade Union Congress, and the Ghana Employers Association.

In the face of popular elections and increasing strikes, the regime agreed to massive pay raises at the end of 1992, including a 70 percent increase for nurses. Overall, civil service pay raises added more than 50 billion to the wage bill, reaching 175 billion in 1992, or 50 percent of government revenue.

At the same time, the regime moved to contain the wage bill by freezing staff recruitment in public-sector organizations as well as state salaries that exceeded those in the civil service


ERP policies during the 1980s resulted in increased external debts as well as in relatively high inflation rates .

Most ERP projects were funded by foreign loans, notably from the IMF. At the same time, the regime repeatedly devalued the country's currency to raise producer prices for exports and to encourage production, but devaluation also led to price rises on all other goods as well. ERP attempts to promote production have, at least in the short term, resulted in higher debts and inflation.

Figures showed that the county's total external debt exceeded US$4 billion by 1991; this figure rose to nearly US$4.3 billion in 1992.

IMPORTANTLY HOWEVER.., the external deficit and requirements for repayments on principal were met through additional loans. The debt figures revealed a strong reliance on official creditors, who accounted for about 92 percent of public disbursed debt, and on concessional funding, which approached 60 percent of total external debt in 1992.

In addition, the country began to borrow on INTERNATIONAL CAPITAL MARKETS in 1991.

Nevertheless, the country's debt service ratio fell at an annual average of 25 percent in 1991 and 1992, reflecting repayment of large IMF obligations and the ending of the government's use of IMF funding at the end of 1991. An additional factor was debt cancellation by a number of leading bilateral creditors totalling US$1.5 billion since 1989.

In the early 1990s, the government was unable to reduce high inflation significantly. Although down from the staggering levels of the early 1980s when inflation hit 123 percent because of drought, inflation in the following six years averaged almost 30 percent.

Recovery in agricultural output in 1984 and 1985 helped shrink inflation rates, but a marginal decline in food production in 1986 was accompanied by an upward trend in inflation. For the next four years, ever higher food prices, driven by devaluation, contributed greatly to high inflation. By late 1994, the country's inflation rate stood at about 28 percent.

Despite efforts under the ERP to stabilize the country's balance of payments, Ghana's current account remained in deficit throughout the 1980s and into the early 1990s.

Both trade and Services deficits continued into the 1990s, given the country's dependence on concessional inflows and IMF funding. The current account deficit fell by US$91 million in 1986 from US$134 million

in 1985, but it rose again by US$54 million in 1987. After another recovery in 1988, it was back at US$99 million in 1989 and widened to US$228 million in 1990, US$253 million in 1991, US$378 million in 1992. It was projected to fall to US$190 million in 1994.


Agriculture is forme the country's most important economic sector, employing more than half the population on a formal and informal basis and accounting for almost half of GDP and export earnings.

The country produces a variety of crops in various climatic zones which range from dry savannah to wet forest and which run in east-west bands across the country. Agricultural crops, including yams, grains, cocoa, oil palms, kola nuts, and timber, form the base of the economy.

Although nkrumah attempted to use agricultural wealth as a springboard for the country's overall economic development, the country's agricultural output has consistently fallen since the 1960s.

Beginning with the drop in commodity prices in the late 1960s, farmers have been faced with fewer incentives to produce as well as with a general deterioration of necessary infrastructure and services. Farmers have also had to deal with increasingly expensive inputs, such as fertilizer, because of overvaluation of the cedi.


1.- Food production has fallen as well, with a decline in the food self-sufficiency ratio from 83 percent in 1961-66 to 71 percent in 1978-80,coupled with a four-fold increase in food imports in the decade prior to 1982.

2.- By 1983, when drought hit the region, food shortages were widespread, and export crop production reached an all-time low.

When the rawlings regime initiated the first phase of the ERP in 1984, agriculture was identified as the economic sector that could rescue the country from financial ruin. Accordingly, since that time, the P/NDC regime invested significant funds in the rehabilitation of agriculture.

State spending priorities under ERP

Primarily through the use of loans and grants, the P/NDC regime directed capital toward repairing and improving the transportation and distribution infrastructure serving export crops.

In addition, specific projects aimed at increasing cocoa yields and at developing the timber industry have been initiated. Except for specific development programs, however, the regime had tried to allow the free market to promote higher producer prices and to increase efficiency.

The regime was criticized for focusing on exports rather than on food crops under the ERP, by the early 1990s the PNDC had begun to address the need to increase local production of food.

In early 1991, the regime announced that one goal of the Medium Term Agricultural Development Program 1991-2000 was to attain food self-sufficiency and security by the year 2000.

To this end, the regime sought to improve extension services for farmers and to improve crop-disease research.

1.- Despite the statements concerning the importance of food crops, however, the plan was still heavily oriented toward market production, improvement of country's balance-of-payments position, and provision of materials for local industrial production.

2.- Furthermore, following World Bank guidelines, the regime planned to rely more heavily on the private sector for needed services and to reduce the role of the public sector, a clear disadvantage for subsistence producers.

In particular, industrial tree crops such as cocoa, coffee, and oil palm seedlings were singled out for assistance. Clearly, agricultural sectors that could not produce foreign exchange earnings were assigned a lower priority under the ERP.


The country's economic well-being and recovery program were closely tied to significant levels of foreign loans and assistance, especially from the World Bank and the International Monetary Fund. Altogether, between 1982 and 1990 foreign and multilateral donors disbursed a total of approximately US$3.5 billion in official development assistance; at the same time, the country's external debt reached US$3.5 billion.

By 1991, the largest bilateral donors were Germany, the United States, Japan, and Canada, which together provided Ghana with US$656 million in development assistance.

The largest multilateral donors in 1991 included the European Community, the IMF, and the International Development Association, which furnished almost US$435 million to Ghana.

In addition, the regime obtained five IMF programs amounting to approximately US$1.6 billion: three standby loans, simultaneous Extended Fund Facility and Structural Adjustment Facility loans, and an Enhanced Structural Adjustment Facility loan in 1988.

The regime signed more than twenty policy-based program loans with the World Bank. The World Bank also sponsored six consultative group meetings; the first, held in November 1983, resulted in pledges of US$190 million. Between 1984 and 1991, almost US$3.5 billion more was raised at five additional meetings.

In 1991 the country successfully raised its first syndicated loan in almost twenty years in the amount of US$75 million.

The loan's collateral was a proportion of the country's cocoa crop.(Akans are the producers of Cocoa, but they're the ones who are always neglected by these socialist regimes)

Special arrangements were made to ensure that a specific amount of the crop was purchased using letters of credit.

Then in March 1992, the IMF announced that following the expiration of the country's third and final arrangement under the Enhanced Structural Adjustment Facility, the country needed no further IMF financing.

Even so, the P/NDC regime asked the IMF to monitor progress on the country's economic program and to continue policy dialogue.

IMPORTANTLY....In early 1994, the P/NDC used the country to accept the obligations of Article VIII of the IMF's Articles of Agreement.

According to the IMF, the country will no longer impose restrictions on payments and transfers for current international transactions or engage in discriminatory currency arrangements or multiple currency practice without IMF approval.

The P/NDC used the country, with this decision to enhance its image with foreign investors and bankers, but at home the people were still suffering.

Ghanaians tasks government to Probe rawlings & family as well as his P/NDC !

Abotesem, Politics nso na aba fo, na nka Opportunist, Dust bin Bagbin , nso ne hwan?

Dust bin Bagbin should explain to Ghanaians about the dubious transaction behind the acquisition of the Presidential Jet that his illegal high way P/NDC purchased for the Presidency.

Ghanaians demand explanation from this Dust bin Bagbin on how his high-way P/NDC came into power in Ghana.

After all, of what importance is this parasite Dust bin Bagbin to Ghana?s Parliament apart from collecting big salaries and draining from the HIPC common fund.

If he really understands modern Politics, then this Parasite Dust Bin Bagbin must ask jerry john rawlings to account for his daughter?s irresponsible free flights with the Ghana Air Force jets.
Ghanaweb site is very shamful
Author: O.O.B
Date: 03-14 12:42

...................."It will be recalled that Madam Asiam recently, caused major ripples in NDC, when she revealed that she had been given ?1.5 million, and a return trip to London, to enable her insult the national chairman, Dr. Obed Asamoah, on local radio stations and on Fm stations in London"................

This is a complete bribbery case !

And if bribbery is not defined under corruption category, then I still do not know the meaning of the word.

jerry john rawlings, there is corruption in your own P/NDC set up !

Fight corruption in your own Robin Hood revolution before you turn around to accuse others !

You even said that the Tamale branch of your own organization is corrupt, so kindly remove the speck from your eyes!

Your own criminal movement is corrupt!

Leave Ghanaians in perfect Peace.
Ghanaweb site is very Shameful
Author: O.O.B
Date: 03-14 12:41 

jerry john rawlings once declared in public that he has stoped smoking, that's why he has put on weight.

Many people in Ghana still remember this funny statement

This is a man filled with so much inconsistencies and madness.

Never believe a word from his mouth!
This Web site is very shameful
Author: O.O.B
Date: 03-14 12:40 

jerry john rawlings' inconsistencies and madness!

"Robbing Peter to pay Paul"

This manipulated and incomprehensive action is a real "day-light Robbery" against innocent Ghanaians, since rawlings is neither a credit giver nor a credit institution to help others to become millionaires.

Because it is unlawful and legally incompatible to allow a house-boy, or a watchman to kill the owner of the house ,or the landlord, and take over the house and all other belongings from the real owner as his personal property.

jerry john rawlings, explain to Ghanaians how you helped your cohorts to become millionaires ,since you`re not a financial institution!

jerry john rawlings, explain to Ghanaians why the high ranking military officers have to be killed!

General Kotei, Feli, Utuka, Air vice Marshal Yaw Boachie and many others were executed for nothing, right ?

Oyiwa, Ghanafuo

Over to you!
This Web site is very Shameful
Author: O.O.B
Date: 03-14 12:38 

The so-called Champion of democracy in Ghana was conspicuously absent from the recent Presidential and Parliamentary Inauguration ceremony held in Accra, though he was in the country.

Does he really understand the meaning of democracy as his blind supporters are making noise for?

Is he really matured as a politician?

Is this man the champion of democracy in Ghana?

EDITORIAL: Rawlings? legacy

The just concluded elections in Ghana, which have won international plaudits for being free and fair, shows that former military ruler and later civilian president, Rawlings, has bequeathed to his country a stable and vibrant democracy. His 1981 coup was really the revolution to end all revolutions in Ghana.

Now Ghana has matured into one of the great African democracies. The credit for this proud achievement goes first and foremost to Rawlings who voluntarily relinquished power in 2000 after 18 years at the helm, and who laid the foundation stone of Ghana?s Fifth Republic in 1992 when he presided over the return of multi-party democracy.

Rawlings? metamorphosis is indeed incredible! When he first came to power in a coup in 1979, he struck fear into the hearts of many of his countrymen when he publicly executed three former presidents and senior government officials without a fair trial for alleged corruption. Yet within three months, Rawlings and his AFRC handed over power to civilians. Twenty seven months later, in 1981, Rawlings seized power again and famously declared that that was the last coup in Ghana.

He led Ghana out of a near famine situation in 1982/84 into a prosperous period from the early 1990s when Ghana became a role model for its successful implementation of Structural Adjustment Programmes.

When the pressure for the restoration of democracy mounted, Rawlings accepted the popular yearning for multi-party rule and organised and won two elections in 1992 and 1996. In 2000, he joined the shortlist of African leaders who have willingly handed over power.

Of course, there were other agents of change including the highly critical Accra press and civil society such as the Bar Association and the students, some of whom, including the crusading editor, John Kugblenu, lost their lives in the fight for democracy and the rule of law in Ghana.

Now Ghanaians are harvesting the sweet fruits of the sometimes very bitter days of Rawlings? military rule. The international acclaim for Tuesday?s elections have won much respect for Ghana, and it has put the country on the enviable pedestal of democracy achievers in Africa. Now the international community should assist in the further strengthening of governance by helping the country to fight poverty and diseases.

Source: Daily Observer (Gambia)

Question :


....."there were other agents of change including the highly critical Accra press and civil society such as the Bar Association and the students, some of whom, including the crusading editor, John Kugblenu, lost their lives in the fight for democracy and the rule of law in Ghana."

If the writer do admit that these agents were fighting for democracy and the rule of law in Ghana against the resistance forces of Jerry John Tiriwue Okumnipa Rawlings & his Robin Hood P/NDC, why should he then invariably accord the credit to this killer and not the Bar Association, the Civil Rights for Freedom press and the editor John Kublenu?

Nokware asa wo Ghanaman mu anaa ?

Rawlings is a man who openly uses to show his disregard against democracy, if this is true, how can such a contradictive person become the champion of democracy in Ghana?

Rawlings is a man who hijacked Ghana's democracy for decades, suspended all legitimate political parties, disbanded all multi - party democratic activities and abolished a legally accepted constitution. How then could such a thief and ignorant person become the champion of democracy in Ghana?

Before the imposition of his "Sakabo" ugly revolution, Ghana was already enjoying the 1st, 2nd and 3rd republics, how then could such an ADHD brain infected personality turn out to become the champion of democracy in Ghana?

What would Ghanaians say to recieve pardon from J.B. Dankwah, Kofi Abrefa Busia, Victor Owusu, Paa Willi (Willaim Ofori Atta, ) Obetsiby Lamptey, Arko Adjei, Hilla Limann, Moro Igala, Kommla Gbedemah and the rest of the true champions of the democrats if the credit of the democratic medal is to be awarded by Rawlings who doesn't understand the meaning of democracy ?

In democracy there are no presidential declarations, and presidential candidates have to go through the due process to get elected. What happens at Swedru is a testimony to all Ghanaians.

A nation wrecker and a criminal like this belong to prison and not in politics.

Aden, Nokware asa?

Spinning to what effect?

They wrote these themselves to give praises to their lord of all mad men in the country.

Peh ...Apuutaa !

If any body still care to know the true legacy of Jerry John Rawlings, below is an excerpt of a written record to refresh your memories. I've written it here before and I'm posting it here once again to remind those who seems to have forgotten the facts due to their short memories. Many Ghanaians around in the country at present have experienced and are themselves witnesses to this brutal and authoritarian Rawlings' regime. For any doubts they can add their additional commentary to dispute the known facts.

Ghanaians know Rawlings better than this Gambian news paper editor.


The second coming of Rawlings into the seat of government, as with the first, was concerned primarily with the corruption that had permeated Ghanaian society.

Styling itself as the Provisional National Defence Council (PNDC), the regime immediately began another house-cleaning exercise, following a populist Libyan model. The approach was to establish some socialist style of defence wings like the People?s Defence Committee (PDCs) in local communities, along with Workers? Defence Committees (WDCs) at places of employment to protect their self style revolution.

Although unconstitutional in democratic governance whatsoever, these illegal wings challenged the authority of chiefs, managers, professionals, and even military officers who are not in line with the bogus socialist concept that have been forced upon Ghanaians by the power of the gun. Those who opposed or criticised the system were labelled or inscribed as enemies of the Revolution, or dissidents and were punished severely. Later in the year the local councils were placed under the PDCs/WDCs.

District and regional councils were re-constituted, to place them under grassroots control. A parallel system of tribunals was also established during 1982.

To tackle the so -called ill-gotten wealth garnered under the old regime, the largest denomination banknotes were recalled and exchanged for frozen bank deposits, while bank deposits in excess of c/50,000 that could not be justified were confiscated (?That was the beginning of the well known ?Animal Farm? type of deception politics. Those interested can get the meaning and interpretation from George Owell?s book entitled ?1984? which was banned in Ghana by Kwame Nkrumah and his CPP government. Confiscation of Individual?s assets and wealth became possible by the PNDC because those regime members knew frankly that Ghanaians don?t keep records. Most of the elderly rich men were illiterates who cannot provide any book-keeping records, bank statements and receipts to support their accounts. The PNDC also knew that many innocent Ghanaians are afraid of the military power, and in that direction, they will gave up their money rather than going through the pain to make any meaningful account for it. In a nutshell, that exercise was a replica and not any different from Akuffo?s DAY-TIME ROBERRY against innocent Ghanaians ?).

Ghanaians are still asking where their confiscated money went and how it was spent

Market women and farmers were forced to sell food at controlled prices (the same old economic mistake that ?NRC/ SMC I & II? committed. So where is the difference between the PNDC and its Acheampong /Akuffo regimes? )

Such arbitrary actions exacerbated the mistrust with which all economic agents ? both corrupt and honest ? viewed the regime.

Despite the fact that Rawlings had come to rule a second time amidst considerable popular university student?s approval (Kwabena Tawiah & colleagues),he was by no means securely in power.

His tenuous hold was apparent in the traumatic events of 1982. Odeyifo Asare, business men and women, and even people with mental problems were shot in the open space to demonstrate the power and might of the army in the so-called Holy War .The people of Kumasi particularly suffered the most.

Ghanaians became prisoners in their own country. People were ordered to rise up their hands as soon as they meet any military personnel on the street.

Dead bodies could be found in all corners of the city, especially the Central market near the police post. Individual Ghanaian Homes were demolished and were framed up to have been involved in a coup attempt.

The military attempted the same lies and tricks to kidnap and kill Nana Yaw Boakye of Dekyemso near Osei Kyeretwie Secondary school because of his wealth, but failed.

There was absolute chaos and fear among the people. A government that was supposed to rescue and protect its citizens had turned a killer itself against its own citizens.

Armed Robbers, homeless Street boys, Marijuana smokers and other drug users were those who found a new heaven in that revolution and became the die-hard supporters of that government. Personal body guards like ?Kotoro? who actually were protecting Kumasi Asanti Kotoko Bosses, Yaw Bawuah of Wiamoase and Allan Gyimah of Mampong, ?A-life? among others, in addition to some section from the Ewe communities who were hitherto on the lowest rung of the social ladder eventually turned the new leaves of millionaires for playing the role as agents, informants and spies for the revolution at the expense of their former bosses. Actions of Say-It-Laud?s ZEO could be viewed as a testimony because he had never hide his hatred towards Ashantis and our sister Akan groups.

(" The PNDC was indeed said to have come for the common man").

?W ?akum Adehyie ama Adonkofuo adi ade ampa?!

Apostle Kojo Sarfo, the founder and leader of Christo Asafo Mushroom Church, who started life as a beggar at the Kumasi Railway Station and was living next to ?Ghana Guinea Mali England London Tuozafi Chop bar ?, unexpectedly became a good friend of the revolution as well, and was receiving logistical support from the ministry of Agriculture for farming because he was giving charity to Hospitals.

Moslem religion was encouraged and received government support and holidays for their pilgrimage to Mecca and Medina so that the revolution could get some backing from the Zongo people.

At the same time, the Catholic Church and those highly recognized protestant churches which had been building schools, hospitals, and providing social needs for the people since Ghana?s independence were ordered to register so that their actions could be monitored severely.

They were also ordered to pay some heavy taxes. Dr.Selby and other prominent people in the country tried to intervene to rescue the situation, but their efforts came to no avail.

Was this fair?

(Indeed the PNDC came for the common man. (The same mistake as the price control system) And some of the consequences are the armed robbery problem the country is facing today).

A curfew was imposed on Ghanaians from dusk to dawn and nobody actually knew what was actually happening during these hours. There were speculations that, that was the time the revolutionary members and the military used for their kidnapping and mass killing operations.

?Culture of silence? was the order of the day.

Ghana Bar Association and the media were subdued and almost got dismantled.

?Law and Order? was absent in the system. Terrorism took absolute control over national affairs. And no individual citizen dare criticised the style of that government

could such a person and his illegal regime be referred to as true champions of democracy in Ghana?

In June, four persons, including three senior judges, were kidnapped and murdered. (?Major Acquah, Mrs Justice Koranteng Addo, Justices Sarkodie and Agyepong?)

Two members of the PNDC were implicated namely, Amartey Kwei and Amedeka. The question still remains why those two top officials from that regime were involved in this inhumane and senseless act.

Members of that regime even today continue arrogantly to defend their stance without showing any remorse. Their followers like Zeo used to spin on that to provoke Ghanaians on SIL.

?Owura Zeo, Ghanafuo abre mo ne Awudisem?, ena se ?etua wo Yonko nso ho a, wo se etua Dua mu ?(A very poor and another catastrophic Human Rights Record to mention but few).

While one was tried and later executed, the public revulsion at this alien political style was palpable.

(Killers in the regime of politics by default)

The Ghana Catholic Bishops Conference aptly summed up the feeling which was widely felt:

?In the wake of the ?revolution? atrocities of all sorts have been committed against innocent civilians by some members of the armed forces and various groups purporting to support the revolution. The wanton killings, senseless beatings, merciless molestation and general harassment continue without the Government showing any willingness or ability to do anything about them.?

The whole situation became so irritated and disgusting that even annoyed and prompted President Reagan to insult the entire nation and its intellectuals for allowing such a failure in life and a bastard to rule over them.

Elsewhere in the world, the past records and experiences of an individual, is vitally needed for a requirement to hold any new qualified position. Indeed it is an insult for an independent nation like Ghana to have chosen its leader this way from virtually nowhere.

Until today, Ghanaians are still asking Boakye Djan and Akatapore for staging their coups and allowing someone who couldn?t even pass his promotion examinations in the Army, to become its leader.

The official inflation figure for 1982 is considerably lower than that of 1981 .However, in the chaotic atmosphere of 1982; it is dubious that the statistics reflect the true situation. The number of persons affected is not known exactly. Estimates range from 600,000 to 1,000,000 persons.

With the economy and the state in shambles, no attention was paid to the underlying economic reasons for the corruption and the failing economy or to the now very limited ability of the state to carry out even the most elementary functions. Even as the economy was hitting new lows, disastrous shocks to the economy further exacerbated the situation.

Severe food shortages in the urban areas as a result of mistrust against the government by local farmers, and due to the combination of attempts to ?control prices?, even as inflation continued, and the breakdown of the transportation system, (among them shortages of crude oil) were commonplace

These became even more serious in 1982 as drought returned to West Africa with a vengeance. Forest fires raged in the middle regions of the country, destroying vast sections of the forest where cocoa trees grew.

While this was happening, Nigeria chose to expel hundreds of thousands of Ghanaians who were illegally living there, just as the Busia government had expelled Nigerians and other aliens in 1969. The task of reabsorbing these individuals placed enormous strain on an already crippled Ghanaian economy and society.

In trying to gain some political support and cheap sympathy from the returnees (deportees) and their relatives at home, Rawlings ordered to use the remaining tax payer?s money and the country?s limited resources for the evacuation exercise from Nigeria.

The Vatican and its catholic church as well as the international community came into the rescue and sent in some humanitarian aid and food for the relieve operation.

Libya, Cuba, China, Nicaragua, East Germany, the old soviet Blocks and Burkina Fasso were the PNDC?s role models and main allies (Thomas Sankara of Burkina Fasso was therefore honoured with the highest national award to strengthened the socialist relationship with his self styled revolution in his country and the PNDC) The Sankara circle in Accra did tells a lot to Ghanaians.

It became clear to many in the PNDC that the actual path was not working, both in political and economic terms. In the third quarter of 1982 a special committee was struck to explore alternative economic paths.

The statist socialist approach of Nkrumah, and the consequent rent-seeking associated with the regimes of Acheampong, Akuffo and Limann, had produced economic atrophy and corruption. Yet the populist approach was continuing the economic atrophy also by the PNDC (Any difference?).

This left room for consideration of a third way, an outward looking market-oriented approach. This held out the genuine hope that the reforms would not simply increase GDP, but also address poverty and eliminate rents for the corrupt.

It was in this context that the PNDC chose to launch a market oriented economic reform program in the April 1983 budget (and PAMSCAD, ER, SAP etc.etc became top on the agenda and the ?Asantrofie? IMF /World Bank suddenly emerge as the new friend since it became very obvious that the PNDC lacked what it takes to create its own domestic wealth as compared to the case of Acheampong?s NRC/SMC regimes).

Work had commenced during 1982 to devise alternatives to both the kleptocracy of the old regime and the populism of the early PNDC. Critically, both Rawlings and his heretofore leftist cum socialist oriented Secretary for Finance and Economic Planning, Dr. Kwesi Botchwey, were persuaded that a market oriented reform program was the only escape from the continued downward spiral. Though they continued to condemn the West, and anything Western was abominable against their principles so as to pacify their followers, the IMF/World Bank suddenly became their saviour.

That decision for a change of direction was contrary to their revolutionary concept. It also became evidently clear that the PNDC was politically and economically inconsistent, their ideologies and believes were contradictory.

Some of their own members saw the leadership and chairman of the revolution as having credibility problems, and that prompted them to resign (?Akatapore among others?).

With regards to their hard-line socialist principles, not all of the PNDC supporters were persuaded for this sudden twist of economic policy, for in November, as word of preparation of the alternative leaked, another coup was attempted. With the failure of that coup, the fate of the radical populist economic strategy was also sealed.

More and more coups followed in a series, but none of them succeeded. (The most popular attempt among them was that of Jiwa)

In an interview given to the BBC world for not so long ago, the former finance and economic planning minister, Dr. Kwesi Botchway surprisingly commented that, he still believes in the Old inapplicable system of Carl Marx theories.

Many people all over the world who coincidentally watched that interview were very amazed. The reporter himself couldn?t believe to be real what the former finance and economic planning minister was saying.

May be he did not want to admit to his mistakes in order that others may judge him for a personal political and economic defeat or he was just being naive and incompetent like the communist Seckago of SIL fame who use to continue to uphold that system, or he was just trying to be loyal to his unqualified regime and leader.

The Legacy of the Early PNDC

The early PNDC government faced the monumental task of restoring the health of both the state and the economy. The provocation of the Acheampong/Akuffo regime and the ineptitude of the Limann government may have justified extreme measures.

Yet in the process, the view of the state and its agents as predators became firmly fixed in the minds of entrepreneurs. This continued to haunt the Rawlings led government, even as it restored macroeconomic balance and moved to establish a modicum of democracy as a result of both domestic and international pressures. Thus, the damage which the previous regimes, and the populist phase of the PNDC inflicted on the economy, would remain for many years.

Despite enormous domestic and international pressure that forced the regime to transform from military to multi- party politics and to give freedom to the people, his ignorant followers continue to argue that Rawlings is the father of democracy in Ghana. Sounds very contradictory.

This is a man who made a declaration to appoint a presidential candidate without going through a democratic process.

This is a man who overthrew an elected government, suspended the constitution, and abolished all legitimate political parties from the country.

This is a man who still have believes in military interventions and dislike democratic dialogue and criticism.

It is also a general believe that ?Democracy was in Ghana before 1992 and started since 1957.

It was not until the year 2000 that the dreams, the struggle and the voice of the people was heard with the motto:

?Ehuru se den a, ebedwo? No condition is permanent.

The current presidential candidate of the defeated P/NDC party, Attah Mills?s 24 hours consultations promise he made to bring back Rawlings to power, had failed to materialized, because during the time our Fante brothers and sisters were suffering and dying at the hands of this useless dictator, he Fiifi Mills was earning big salary and drinking tea for no work done.

Are you surprised that the support base for the P/NDC and Rawlings are all centred in "insignificant", poor and illiterate rural areas?

Pardon me for using that word "insignificant", but it's sometimes inevitable.

If the economy had been flourished under "jerry john rawlings" as this Gambian news paper is claiming, it would have created jobs and Ghana would not have officially registered for bankruptcy (HIPC). And I may ask this editor again, where were the jobs?

This shows that the economic index that the P/NDC were using to feed the World Bank and the IMF in return for political praises were all fictitious and unfounded.

This also goes to affirm to the statement that ," if anyone is running a business venture or a company, and that person is not gaining any meaningful profits and yielding dividends nor breaking-even, it may sound economically wise to declare that set up a bankrupt to safe for further losses and defray cost."

And it is upon the content of this reason that President Kuffuour?s NPP government chose to declare the country HIPC (not worthy for credit) status against the interest of the socialist groups Ghana on assuming office. Ghana couldn?t afford to run at a loss anymore!

This is the true ugly legacy of "jerry john rawlings" and not as depicted by the Gambian news paper editor up there.

Compare and contrast.

Akonwaso ye de papa! ?
RE: It is called "Logoligi Logarithm"
Author: Anthony Kumah
Date: 03-14 12:34 

Atukwei Okai must have been predicting this period in Ghana's history with his famous "Logoligi Logarithm":

"...He said road projects that were reported in the 2005 budget as having been completed in 2004 were again reported in the 2006 budget as having been completed in 2005, while roads reported to be at an advanced stage of completion in 2004 were reported to be at lower stage of completion in 2005..."

That is the NPP for you!!!
Difficult to Trust these Guys.
Author: Sir Franko
Date: 03-14 11:21 

I don't really trust these intellectuals. What they say sometimes depend on which side of the political divide they belong. What Thompson is saying may have some truths in it but as a political person speaking on a purely political platform, how else can he win votes for his party? Hmm???
Kwabena Agepong defends 1966 c
Author: Yaw, USA
Date: 03-14 11:07 Kwabena Agepong defends 1966 coup
Accra, March 11, GNA - The Convention People's Party (CPP) on Saturday said no coup d'etat is justifiable; "forceful overthrown of any democratically elected government is not acceptable under any condition in the past, present or the future."

He said: "overthrow of Dr Nkrumah's regime by Zionist Forces and their local collaborator had been the bane of Ghana's developmental agenda, which also derailed comprehensive programmes embarked upon by the government for the attainment of economic independence, this disservice to the nation can never be justified under any condition.

"Apart from Ghana, the military take-over had far-reaching consequences on both political, economic and national integration of the continent," Dr. Edmund N. Delle CPP Chairman stated at Adenta, during a meeting with Polling Station executives of the party on Friday.

He described Mr. Kwebena Agyei Agyapong, Press Secretary to President John Agyekum Kufuor's justification of the 1966 Coup as "infantile talk of ignorance and must be discarded outright."

Dr Delle said military adventurism and disruption of the process of democratisation had retarded the nations development, "at 49 years were are still depending on foreign donor support to strengthen national budget, face with poor infrastructure, breakdown of factories that the Dr Nkrumah's regime established and above all decent people were maltreated and dehumanised and for any right thinking Ghanaian to justify this act is committing democratic suicide."

The CPP Chairman and Leader urged Ghanaians to abhor Coups and prepare to defend the Constitution, irrespective of which political tradition is in power, "Politicians should not justify and jubilate because when the military overthrows their opponent in power, such attitude offers a fertile ground for continuous military interventions in body politics of a country".

Mr. Agyapong was reported by a section of the media to have said, "anybody who refers to 24 February 1966 as a day of shame is advertising his ignorance of Ghana's political history, in that the dynamics of the internal political situation at the time called for that military intervention."

According to Mr. Agyapong, prior to the overthrow of Dr Nkrumah, Ghana's first President, there was a political situation where the president had declared a one party state and himself as the life President of Ghana, as a result of which he adopted a policy of vendetta and vindictiveness against his political opponents.

Mr. Agyapong is quoted to have said: "In order to clamp down on his political opponents and cow them into submission, Dr Nkrumah manipulated Parliament to enact the oppressive Preventive Detention Act, which was used to incarcerate anybody perceived to be against his authority and dictatorial regime.

"This, I expected the Socialist Forum and their newly found allies to acknowledge instead of trying successfully to find fault with the Danquah/Busia tradition at the time."

Dr Delle whose visit was to launch a CPP mass mobilization drive from the polling stations through the Constituencies and to national level of the party urged CPP activists to defend the legacy of Dr Nkrumah and the tenets of multi-party democracy.

He encouraged the formation of strong polling station executives to serve as a platform for mobilization.

Dr Delle, who is the President of RABITO Clinics called on the youth to be selfless, modest and prepare to sacrifice their lives and resources to build Ghana into a prosperous nation.

He said the future of Ghana depended more on the youth and challenged them to bring their resources to bear on the country's quest for speedy development.

He debunked the notion that, the CPP was made up of old men and women and said the party had faith and believed in the capabilities of the Ghanaian youth and urged them to learn hard to acquire knowledge that would enable them to contribute meaningfully to nation building. Dr. Delle stated that, the CPP would continue to support and encourage indigenous entrepreneurship in the country and urged Ghanaians to be proud of their own indigenous products to enable the local industries to grow and expand.

He deplored the confrontational postures being exhibited by activists of the ruling New Patriotic Party (NPP) and main opposition National Democratic Congress (NDC) and said the CPP was a party of peace and would not engage in any unnecessary confrontation that could derail the country's democratic process.

Dr Delle urged members of the party to be disciplined, law abiding and work hard to market the ideals and ideas of the founder of the party, to enable the party to win the 2008 elections. Mr. Kofi Attoh, Greater Accra Secretary of the party said CPP was the only party in the country that had the tools and knowhow to manage and save the country from poverty.

He urged members of the party to educate the electorate to embrace the ideals of the CPP, which has the policy of wealth creation, to enable the party win the next general elections.

The Constituency Chairman and Secretary, Mr. Dennis Gymah and Mr. Chris Saugbey respectively commended the National Chairman for the visit, which, according to them would fuel party activists in the constituency to work hard.

Other members of the team, which also visited Ododdiodoo, include Mr. Oteng Anane, and Mr. Daniel Quartey National Youth Organiser and Deputy National Youth Organsier respectively.

Author: DUASH
Date: 03-14 10:56 

Sounds like campaign to me.
Author: SPIDER.
Date: 03-14 10:46 

Dr. Thompson you think that you can fool us? If you know so much about the past history of 1957 and 1966 etc, keep it for yourself because Ghana should not live in the past. For some people that past only brings pain. Also we don?t have CPP; we don?t have NDC we have NPP, so let us unite behind it as they try to repair a country that various coups has set it behind years. If this is a campaign speech then say it so that we know your true colors?
Political economy
Author: Ebo Kobena
Date: 03-14 10:41 

Good reflection but direct your focus on the present,please. We cannot continue to live in the past Nkrumah created. There has long been a paradigm shift. Let us assess what it takes to move the country forward.
Author: G_naba
Date: 03-14 10:22 

Ghana's Economy
Author: X.X.X.X.Y. Aaaaah
Date: 03-14 09:39 

Is the President and his Minister for Finance and Economic Planning listening?

The gov't is lying indeed.
Good work
Author: Micky
Date: 03-14 09:33 

...ah it is coming to light the details of ecomony.. I wish more research is done ..thanks to Dr, Thomson for the brief economic situation. We can do better for the welfare of the people Ghana than building palace, buying 4x4 cars.. may our brains are not full grown to see the future thus the good one brain drain if I may say so
At What Forum
Author: KK
Date: 03-14 08:47 

Beleive you me the details of the lecture would have been different if Dr Thompson were invited by the NPP youth.
I guess what I am saying is the forum determines whether to praise or criticise. This is an opposition forum so expect no praise or you wont like it.
Author: USA
Date: 03-14 08:33 

Author: USA
Date: 03-14 08:33 

Author: Frank Mensa
Date: 03-14 08:24 

It takes more than history, graphs and tables to run an economy. To say that the rate of change of oil price worldwide has slowed considerably is academic dishonesty. Why did he not tell us the cost of going HIPC. Does it not make economic sense to say that, well the government can not carry everything on its shoulders? The problem is not how much was saved or lost on HIPC; the problem is that government after government is a thief. A gang of people who see politics as a chance to get rich, damn the people. If you have revolutionaries ruling the country for 20 years, this is what happens.
Author: yaa yaa
Date: 03-14 08:20 

This economics can go and rest, when his party comes to power then he can come and offer his ideas - period.
Re: Govt Lying About Economy -Economist
Author: Kwabena
Date: 03-14 07:52 

It is these types of economic analysis that can move the nation forward but not empty political talks by Kufour who has no clue of the per capita income of the country he claims to be governing.
Fake , Bogus and Despicable !
Author: Obotantim Odumgya Brempong
Date: 03-14 07:50 

Ghana?s turbulent economic and political history contrasts sharply with the great potential that the country exhibited at independence.

What went wrong?

With almost 50 years of experience,scholars today are in a position to begin providing an answer to that question. Inevitably, the answer has many dimensions;



.Political, and


and within each dimension there were numerous complexities, all of which were interacting with each other. To contribute to a better understanding of the economic dimension, I have focused on the determinants of Ghana?s long-term economic growth performance. The principal purpose of this, then, is to sum up what Ghanaians have learned about the determinants of their long term growth. It is high time Ghanaians realized that they are the causes of their own economic miscarriage.

.Poor managent of State resources and affairs

.as well as selfishness and


. virtually less sacrifices

are the contributing factors of their failed State.

At the most basic level, Ghana's economic atrophy to 1983, and modest recovery since the launching of the reform program, are attributable to the combination of weak investment and low productivity.

This was spelt out in the growth accounting analysis . The low investment rates, in the presence of rapid labor force growth, have meant that the capital/labor ratio today is only on a par with that achieved at the time of Nkrumah's overthrow in 1966. Further, the productivity of labor and capital continue to lag substantially behind the levels achieved in the early years of independence.

But why have investment rates and productivity been low?

The answer to that question is much more complex.

It involves economic policy failures and political failures. In what follows, we trace various economic and political themes which, with their variations, repeated throughout the story of modern Ghana, help explain the economic performance.

With a clearer understanding of the economic and political past, and expectations concerning the nature of the political regime that has emerged after the post P/NDC misrule regimes, it is possible to contemplate what the future might hold.

One way of doing that is to project various potential future scenarios, based on plausible values for key economic variables. This permits us to examine the feasibility of various future scenarios that have been proposed, such as Ghana?s official Vision 2020 which the current finance minister, had found it difficult to achieve, and to identify the policy thrusts that would achieve sustained high growth for Ghana.

Economic Policy Themes

There are four major policy themes that run through the last half century of Ghana?s modern history:

.excess demand,

.currency overvaluation,

.anti-export bias,

and financial repression.

Each has had a major impact on the outcome.

Excess Demand

The first theme is excess demand. Repeatedly, from the days of Nkrumah onwards, fiscal and monetary policies failed to control excess demand. Some bouts were worse than others, and there were some periods of restraint, such as under the NLC following Nkrumah's overthrow. But the overwhelming effect for several decades has been that no Ghanaian has been able to count on a stable macroeconomic environment beyond the immediate horizon.

The principal source of excess demand was the government budget. Prior to independence, government expenditures were kept at a steady share of just under 10% of GDP, while fluctuations in government revenues, due mostly to variation in cocoa tax receipts, were simply absorbed by the government's bank balances. But from independence on, control over government's expenditure and net lending evaporated. This changed briefly during the first few years of the reform program, but today remains the central problem.

In the meantime, from the early 1960s onwards, government revenues were stuck at considerably less than expenditures.

As overvaluation of the currency became more serious, the tax revenue base was badly eroded.

This occurred in the late Nkrumah era, and even more seriously from the mid-1970s until the mid1980s.

The investment rate was generally negatively related to the government budget deficit. The channels for this relationship were many, but the most important were the following:

(1) The unstable macroeconomic environment generated uncertainty, adversely affecting the private investment climate and the profitability of investments once made.

(2) Government's own investment was curtailed by its shrinking ability to raise revenue, either by taxes or foreign borrowing.

(3) The lack of essential infrastructure and services normally provided by government, such as roads and schools, further constricted the economy and government's revenue.

Monetary policy was seldom used to restore macroeconomic balance. Rather, the government budget deficit was frequently financed by credit from the banking system, with consequent high money growth rates, inflation, and inflation tax.

Until the reform program was launched, real interest rates were seldom positive, and often highly negative. Even with the reform program, real interest rates have not remained consistently positive.

Currency Overvaluation

The second explanatory theme is exchange rate policy. Excess aggregate demand interacted with a fixed exchange rate to create excess demand for foreign exchange. When the reserves were depleted, the resort to controls in 1961 set in motion the first round of currency overvaluation, shrinking exports, declining imports, and falling government revenues. The overvaluation of the Cedi was reversed only temporarily by devaluations in 1967 and 1971. The cycle repeated itself in more extreme form during the 1970s. The reform program brought a major reversal, finally restoring the real exchange rate to its level at independence in the early 1990s. However, this proved only temporary, as the real exchange rate fell back dramatically in the 1990s, eventually recovering in late 1999.

The level of the real exchange rate clearly affected the real economy, both by directly affecting the volume of international trade and indirectly through the government revenue received from taxes on international trade, and hence the budget deficit. The considerable instability of the real exchange rate also played an important part. Export and import competing producers have both faced substantial uncertainty about their real returns throughout Ghana?s modern history.

That uncertainty has remained in the 1990s, which reduced the gains from reopening the economy to international trade. The potential of the tradeables sector to serve as an engine of growth was thus diminished. The interaction between the real exchange rate and government revenue merits special emphasis.

The base for much of government?s revenue was denominated in foreign exchange at the official exchange rate. Import duties and the cocoa export tax accounted for well over 50% of government revenue into the 1960s. Excise duties were augmented substantially in the 1960s, but these were levied almost exclusively on importables. These three together thus accounted for over two thirds of government revenues in almost every year until the reform program was launched. The failure to maintain the real exchange rate at a competitive level meant not only that the volume of exports and thus imports was restricted, but that the valuation for tax purposes was vastly understated. It is no wonder, therefore, that until the late 1980s government revenue paralleled the real exchange rate.

Bias Against Major Export Sectors

Third, over the decades Ghanaian policy ignored the potential gain from focusing on the nation?s comparative advantage in it?s traditional export sectors. These sectors suffered not only from overvaluation of the currency, but also from various elements that have systematically discriminated against them.

The best known is cocoa, where the real producer price, even many years after the launching of the reform program, has not recovered to the levels of the early 1960s. The cocoa export tax has always been much higher than optimal in light of Ghana?s limited power in the world market.

This, in turn, contributed to a substantial reduction of market share and hence a diminution of that market power. Reinvestment in research and development, and infrastructure in support of the sector has been inadequate. Inflation and financial repression were especially hard on the sector,and government?s insistence on state involvement in the collection and marketing of cocoa absorbed a large share of the potential profit. The length of time it took to reach a consensus on a cocoa sector development strategy, finally launched in 1999, is indicative of the ambivalent attitude towards the sector.

The minerals sector has done better under the reform program, but was the victim of systematic discrimination before. In addition to currency overvaluation,

.state ownership of many of the mines,

.neglect of infrastructure,

.demands for costly local processing,

.and lack of geological survey information

all kept the sector from achieving its potential as an engine of growth.

Traditional exports have also been victims of some considerable variation in the world prices, with prices falling, sometimes at inopportune times. The world price of cocoa in the late 1990s was half what it had been in real terms when the reform program was launched. The world gold price has also dropped by more than 25% over the same period.

Financial Repression

The fourth major theme is financial repression. The potential for the financial sector to support the growth of the real sector was systematically suppressed. The devices were many, ranging from administered interest rates and credit allocation, to state ownership of financial institutions, to arbitrary confiscations of financial assets.

These would have been damaging enough in their own right, but their potency was considerably amplified by inflation.

The reform program has removed many of the more egregious interventions in the financial sector. But given the ongoing risk of macroeconomic instability and real exchange rate instability,the financial sector is not well placed to manage business risk. Further, the shadow of the past remains, for the public continues to remain leery of holding Cedi denominated financial assets.

The financial sector is not yet playing its potential role in mobilizing savings, evaluating innovations, and channeling funds into activities with promise for success.

Consequently, the ongoing process of transferring resources from low productivity activities to high productivity activities, which is fundamental to increasing productivity, is hampered.
Fake , Bogus and Despicable !
Author: Obotantim Odumgya Brempong
Date: 03-14 07:48 


< ? xml version =" PhD . 0 " ? >


"http: / DTD / wm_PhD.LLD.xml " >

African leadership with PhD, LLD academic credence or accolades is meaningless for they have failed to transform their knowledge into good use. Sorry, their brain power is still under construction.

< /p>

< / card >

< / wml >

The WAP server recieves this response, translates it into a compact binary message and sends it out over the airwaves to the requesting device. The WAP device recieves the response, parses the message body, and displays the contents of index.wml on the WAP user agent's screen.

This is how it appear on the browser.

[ African leadership with PhD,LLD academic credence or accolades is meaningless for they have failed to transform their knowledge into good use.Sorry, their brain power is currently under construction.]
Fake , Bogus and Dispicable !
Author: Obotantim Odumgya Brempong
Date: 03-14 07:47 

Given that f ( X ) ? = 0

African leadership ( Ph + LL) D ? = 0

Ph + LL ( D ) ? x African leadership = 0

therefore :

Ph + LL ( D ) ? = 0
Fake , Bogus and Despicable !
Author: Obotantim Odumgya Brempong
Date: 03-14 07:47 

Politics has always been a key determinant of Ghana?s economic policy.The precise mechanism,however, requires careful elucidation. Let us begin by looking at the overstretched state, and then turn to look at the effect of regime type on the economic outcomes.

Overstretched State

A fundamental fallacy took hold during the colonial era: the absence of entrepreneurs engaged in the modern sector required the state to assume the role. Kwame Nkrumah expanded on this thrust,establishing numerous state owned enterprises.

The augmented role of the state was also cloaked in nationalist rhetoric, first by Kwame Nkrumah, and later by others, such as Kutu Acheampong in his indigenization decrees. Yet the very limited capacity of the state to effectively manage both these enterprises and the more traditional activities of the state was never addressed.

Most of the SOEs created by Kwame Nkrumah were kept under the wing of the state by subsequent governments, following the political furore associated with the limited post-Nkrumah divestiture.

The cost of the huge SOE sector can never be fully assessed, but the sheer inefficiency and waste associated with a vast network of establishments facing no serious budget constraint explain a considerable part of the low productivity of the Ghanaian economy.

In an attempt to reverse the drain of the SOEs on the rest of the economy, an ambitious divestiture program was planned during the early years of the reform. But because of the limited capacity of the state, the process was slow to commence and, while accelerating in recent years, is still incomplete.

Nkrumah also began to use the power of the state to redistribute income from the political losers (Akan territories) to the political winners ( Seckago & His national affirmative action beneficiaries)-- i.e., his supporters including about 90 % of Ewes.

The winner-take-all system of government meant that the political losers were also the economic losers ( thus, the UP followers, mostly Akans were economically robbed , and the CPP supporters became the beneficiaries) -- permanently, until the NLC wrested power from Nkrumah and his government by force. ( Majority of Ashantis and other Akans were bared from taken any government jobs because of their Party affiliations. Even until today, the state?s welfare beneficiaries, the Ewes and other non Akans continue to insult Ashantis that they Ewes were/are the best educated Ghanaians second to none in the country. Not realizing that, in real life situation, everybody was / is aware that Ewes were only getting favours based on their political connections but not on their qualifications. Seckago and colleagues for instance were such state?s social beneficiaries and are still parading to get back into power for Ghana`s eternal destruction)

Kutu Acheampong continued, and used the state to create economic winners and losers. Just as his political Lord, god Kankan Nyame Omanboyefuo Dr (hon) Nkrumah did .

But the insecurity of that regime left it unable to limit access to the rents which its policies generated. Rawlings being a political product of that socialist family, also fixed only Ewes and P/NDC supporters in the nation?s sensitive areas with lucrative benefits.

Ashantis and Akans have been developing their own territories since independence without any government help and still continue to do so. Indeed Ashantis and their sister tribes do really understands the operation feed yourself concept.

The principal industries in the country became rent-seeking and smuggling. Had the effects of the redistributive policies been confined simply to the distortions of adverse incentives, the damage would have been far less. The cost was much greater because rent-seeking also wasted real resources.

( Reference: check the detailed list of actions required by the IMF, attached to Ghana?s letter of intent dated November 3, 1999.)

Repeatedly new governments blamed the sorry state of the country on their predecessors? incompetent administration. Never was there any recognition that a large part of the blame lay in the combination of the limited capacity of the state and the growth retarding economic policies pursued.

Having blamed their predecessors? problems on incompetent administration, successor governments failed repeatedly to limit the role of the state to those activities that could be efficiently administered.( eg. The importation of drainage system facilities which hitherto were designed for canalization in Accra city was left to rotten by Acheampong's regime because it was said to be Busia' government initial project , Now Accra is very vulnerable to earthquakes and land slides as a result of that " I don't care attitude " and failure to continue that city's underground contruction works properly ). All that is left is open gutters which now breeds mosquitoes and actively spreading different types of fever, malaria and jaundice.

Successive governments also failed to achieve a national consensus on priorities within that administrative constraint, taking on commitments that could only be met if the administration of other activities lapsed.

It was only after harsh experimentation that Rawlings realized new economic policies were required. Yet he remained a reluctant convert, deeply suspicious of the entrepreneurs who had responded to the incentives created by his predecessors ? a suspicion which was mutually felt ? and loath to withdraw the state from many of the activities that had overstretched it. ( Whilst calling for serious economic reforms, Rawlings for instance was campaigning to see the collapse of some locally manufactures companies. Appiah Minka?s Soap was publicly denounced for patronage because the company?s proceeds will be used to finance opposition politics. Very contradictory)

The reform program thus floundered as it moved beyond the administratively easier reforms (such as the exchange rate) into more complex initiatives (such as divestiture). This, in turn, led the various donor agencies supporting the reform program to demand in ever greater detail specific administrative actions, leaving the Ghana government less and less the owner of the reforms, and the economy was in it?s sense being running by foreigners.

Where was Rawlings leadership capabilities when he could simply manage his own domestic affairs ?

Regime Type and Economic Growth

Some regimes were more successful than others at achieving economic growth, and some of those differences in outcome were clearly attributable to different economic policies, and not to regime type. On first glance economic outcomes appear not to have been affected by regime type.

For example, it was the military regime of Generals Acheampong and Akuffo that presided over the largest drop in real GDP per capita, while it was the military regime of Flt. Lt. Rawlings that initiated the economic reform program that stopped the economic atrophy and resumed economic growth. Nevertheless, this does not confirm the null hypothesis. On the contrary, an important question remains: Independent of the economic policies pursued, did the type of regime itself affect economic growth?

Before examining the possible effects of regime type, it is useful to characterize the different regime types. The most useful taxonomy for our purposes is to distinguish regimes on the basis

Killick (1978), for example, characterizes the policies pursued by Nkrumah as ?development economics in action,? suggesting that Nkrumah was simply trying to implement the orthodoxy of the time witin the interest of the ruler(s).

On this basis there is a central distinction between democratic and autocratic rule. In the former, decisions are taken by the ruler(s) on the basis of the perceived interests of the dominant group in the electorate. In the latter, decisions are taken by the autocrat on the basis of his/her own interests. There is a third possibility ? anarchy, where there is no over riding rule, with each individual acting in his/her own interests.

This taxonomy involves considerable oversimplification, and glosses over some significant subtleties that distinguish the different regimes, and different time periods within regimes. Nevertheless, it is a useful starting point.

Mancur Olson (2000) identified two general conditions that are required for a market economy to be successful:

(1) well defined and secure property rights; and

(2) absence of predation.

Olson also showed that both an autocrat and a democracy have an interest in making the society productive, and thus to provide well define property rights and to limit the extent of predation by the regime. However, because the members of the ruling group in a democracy are also recipients of their share of society?s income, the optimal rate of predation by the ruling group in a democracy will be less than in an autocracy.

In the third possible type ? anarchy ? each individual has only an infinitesimal interest in the overall welfare of society, so has an interest in taking as much as possible for himself without any consideration for the effect on the total income.

Anarchy provides neither well defined property rights nor absence of predation, and hence generally does not lead to economic growth.

Characterizing Ghana?s Regimes

With this taxonomy in mind, it is useful to review the different regimes in terms of governance (democracy, autocracy, or anarchy); and the impact of each regime on the two keys to successful market economies (respect for property rights and the absence of predation).

Nkrumah took power at independence as the leader of a democratically elected government.

Much of his policy thrust was redistributive, albeit in the name of producing rapid economic growth.

The relative returns to traditional economic activities such as cocoa, were reduced, in favour of modern sector activities such as SOEs, thereby creating a new vested interest.

Nkrumah skillfully used his leadership position to gradually transform his government into an autocracy which would not tolerate any dissent. In the process, the redistributive economic policies became increasingly predatory, and a new vested interest was created.

Although the Nkrumah regime never formally confiscated property, it did initiate the use of several confiscatory devices:

? the inflation tax on cash balances, the use of the producer price of cocoa to levy a tax far in excess of the optimal export tax, and the use of import licencing and exchange control to deny access to importers deemed ?non-essential?.

The NLC that overthrew Nkrumah in early 1966 was also autocratic. But it used its power principally to restore the pre-Nkrumah status quo, both in terms of economic policy and governance.

The democratically elected Busia government that took over from the NLC continued the broad economic thrust initiated by the NLC. Debate over economic policy was vigorous, but few entrepreneurs anticipated the downward political spiral that was to follow.

The economic reward for Ghanaian society was a short period of rapid economic growth.

The Busia government sought to reverse the redistribution set in motion by Nkrumah. It was not simply a matter of reversing his policy thrust, however. A large part of the modern sector owed its existence to the distortions that Nkrumah had initiated. Those policies had thus created vested interests in the distributive arrangements he had put in place. The broad thrust of the NLC and Busia governments to restore the balance, faced the opposition of those interests.

The devaluation of late 1971 which, perhaps unwittingly, tipped relative returns dramatically against the military, triggered the return of a military government.

Initially the military government led by Acheampong focused on continuing the policy see-saw, simply reversing the policies of Busia. The most dramatic was the appreciation of the currency, but a variety of other autarkic policies -including ?operation feed yourself,?

and the indigenization decrees ? were instituted as well. In addition, the regime became increasingly autocratic. The military officers, acting like autocrats the world over, took an ever larger share of the economic spoils for themselves. Had the evolution of the regime stopped at that point, the damage would have been similar to the damage sustained during Nkrumah?s autocratic period.

General Acheampong?s government gradually descended into economic anarchy. This was due to a combination of:

(1) failure to control access to the rents generated by the control regime;

(2) a shrinking of the size of the rent pool due to the increasingly autarchic policies; and

(3) a political discount rate that rose rapidly as the regime remained longer and longer in power.

While the military attempted to restore its luster by first renaming the regime, and later by replacing Acheampong with General Akuffo, the descent towards anarchy began to take its toll on the economy. Rights to reap the rewards from past investments in things like cocoa trees, or even the right to the retain the real value of cash balances, were withdrawn by the cocoa pricing and aggregate demand policies respectively. The rents created by the excess demand were distributed by caprice, and could just as capriciously be taken away.

Both the nature of the political regime and the economic policies thus contributed to the economic atrophy of the mid 1970s. The events of 1979, including the asset confiscations under Akuffo, and the chaotic rooting out of corruption by Rawlings, simply added to the insecurity of property.

The combination of the ineptitude of the democratically elected government of Limann and the anarchy of 1979, meant that economic agents remained traumatized, so that none of the potential returns from a democratic form of government materialized during 1980 and 1981. Instead, economic agents engaged in a frantic scramble for whatever rents might be available.

The anarchy continued with the return of Rawlings on December 31, 1981, intent on destroying the corruption of the old regime. So too, the economic atrophy continued.

The chaos of 1982 gradually faded as the economic reform program took hold in 1983. The intention of Rawlings and his economic team to restore the economy to health became clear to all.

In the years that followed, with Rawlings more securely in power, the regime progressed in economic terms from anarchy to autocracy. As the specter of anarchy faded, government provided more security of individual property rights, and began to provide some public goods.

This transformation of regime type contributed significantly to the unbroken stream of increases in real GDP per capita starting in 1985.

The resumption of electoral competition in 1992, and the openly contested elections of 1996, reestablished Ghana as a fundamentally democratic society. However, for many entrepreneurs, memories of the confiscations of the past remained vivid as long as Rawlings stayed associated with the government. Further, in the run-up to the each of the elections, the PNDC/NDC governments chose to engage in deficit finance, indirectly engaging in the predation of inflation that Nkrumah had initiated in the early 1960s, and others had repeated subsequently. Thus, the economic gain to Ghana of moving from anarchy to autocracy to democracy was less than it might have been.


Each of the economic and political themes just outlined would have been sufficient to slow longterm economic growth on its own. When all were working in concert, as they were for a decade prior to launching the reform program, the effect of each was substantially amplified. In aggregate the effect was overwhelming, generating economic atrophy, not growth.

Efforts to reverse the thrust of each have been underway for some many years, but the process is still incomplete. The reform program has succeeded in delivering real growth of GDP per capita, but that summary indicator has only reached about the same level that prevailed at independence, and total factor productivity is still less than in the early 1960s. Macroeconomic balance has not been maintained consistently.

Currency overvaluation was reversed, but in recent years instability of the real exchange rate has emerged. Financial repression, which before the reforms was serious, has been eased, but not lifted. Memories of inflation and asset confiscation linger.

Traditional exports of minerals and cocoa, which shrank to a fraction of their potential, have recovered from the depths, but have not fulfilled their potential as engines of growth.

The limited capacity of the state, in the absence of a national consensus on priorities, remains a constraint on growth. And, finally, the potential fruits of a democratic form of government are yet to be fully realized.

Many Ghanaians, and the international agencies supporting the reform program, recognize that these elements explain much of the atrophy and later recovery. What remains to achieve is consistent application of these lessons over the long term.

.The baseline TFP growth rate is assumed to be 1.6% per annum, and the best case rate is 2.1% per annum. The labor force growth rate begins as 3.35% per annum in 1996, and in stages declines to 2.70% in the later years.

.Vision 2020, p. 5.

Future Prospects

Given what has been learned from the past, what are the prospects for future growth?

One way to assess the potential for future growth in Ghana is to simulate scenarios, given a certain set of assumptions. Scenario simulations are obviously crude, and should not be interpreted literally. However, they are useful to provide a rough idea of the impact of certain assumptions. Hence, we construct two different scenarios, using the same simple analytical framework as for the growth accounting exercise earlier. We also compare the two scenarios with the Ghanaian authorities? own long term forecast or development plan.

In the first scenario, which we call the baseline scenario, we simply extrapolate the growth rates of the capital stock and total factor productivity, using the average growth rates for the period 1992-96, corresponding to the period after the first post-ERP elections.

The second scenario is as optimistic as we judged possible without crossing the line of the unrealistic, and should be considered as a best case scenario. For this we use the total factor productivity growth rate of the1984-89 period together with the highest investment rate attained during the ERP (20 per cent of GDP). Projections of labor force growth are taken from UN World Population Prospects.

These scenarios may be compared to the major long term development goal presented by President Rawlings to the Parliament of Ghana in 1995, called Vision 2020. This document proposed that Ghana should become a ?vibrant-middle income nation within the next twenty five years.? Economic growth was targeted to attain 8 per cent per annum on average, through a strategy of human capital development, improved macro-economic policies, diversification of the economy, the creation of a business friendly environment, trade openness, the promotion of an efficient financial system, among others.

The base line scenario gives a fair, yet not impressive, long term per capita growth rate of 2.1 percent per year. The level of GDP per capita attains $595 in constant 1996 dollar terms in the year 2020, which corresponds to a cumulative growth of about 65 per cent in the 1996-2020period. This performance is improved considerably in the best case scenario, where growth is more than one percentage point higher. As it is clear , the Vision 2020 goal appears hopelessly unrealisticf rom the perspective of the year 2000. In the best case scenario, per capita income is estimated just under $780 in 2020. This is more than double the level in 1996, but still significantly below the middle income status aspired to in Vision 2020. The GDP growth rate in the best case secenario is 2.5 percentage points short of the godal.

There is no doubt that our scenarios have a wide margin of error, and the objective of formulating these scenarios is not to provide a precise forecast of the state of the Ghanaian economy two decades ahead. Nevertheless, the results are telling.

It was all political lies by Rawlings.

The Ghana government has adopted a long term view of development, with a time horizon that stretches more than two decades into the future. Such long term projections could provide important information for agents contemplating investment decisions in the face of future risk ? but only if the projection is credible.

Unrealistic targets only reinforce suspicion about the economic policy package. Despite these reservations, it is clear from the foregoing that Ghana has good potential for future growth. But it will remain a low income country for the foreseeable future.

[This is a continuation of "Ghana's political history", those who compliled my series on that topic here on SIL, can also add this to make it complete for their future political references in their respective files ].
For those who think otherwise
Author: Kobbi
Date: 03-14 07:39 

For those calling the Dr fake, why not present us with your stats and data. He has, so just prove him wrong if you think otherwise. Till you do so, please do not waste our time.
No Bogosso train lawyer
Author: Abin woha
Date: 03-14 07:37 

Fellow ghanaians Wake up from your sleeping DREAMS,

One have to talk directly with Dr Osafo marfo,he mean to explain the same issue that Dr Thompson had voice it out.. Yet this Kufour guy fathered by a Kabre man north of Togo is doing Ghan no favor ,his daughter now flirting the current eyadema walking backwards to the grand father ,wneh Jerry Disciplines those money "BOGUS" guys in the Revolutionary days people say he's not a real GHANAIAN NOW YOU GUYS STEAL A VOTE FOR A NON ghanaian son of the kabre and you are now crying,, no back ground checking.. idiots...
No Bogosso train lawyer
Author: Abin woha
Date: 03-14 07:35 

Fellow ghanaians Wake up from your sleeping DREAMS,

One have to talk directly with Dr Osafo marfo,he mean to explain the same issue that Dr Thompson had voice it out.. Yet this Kufour guy fathered by a Kabre man north of Togo is doing Ghan no favor ,his daughter now flirting the current eyadema walking backwards to the grand father ,wneh Jerry Disciplines those moaney "BOGUS" guys in the Revolutionary days people say he's not a real GHANAIAN nOW YOU GUYS STEAL A VOTE FOR A NON ghanaian son of the kabre and you are now crying,, no back ground checking.. idots...
solutions not problems
Author: kay
Date: 03-14 07:25 

problems stated..we all know this, what are the solutions? that's what we want to hear mr economist
Fake , Bogus and Dispicable !
Author: LSM S`weet Sexy Molly
Date: 03-14 07:22

All those Fake elements involved in this dispicable thing must enjoy with this.
Re: Govt Lying About Economy -Economist
Author: Jonn kofi Antwi
Date: 03-14 07:15 

Iam disappointed about our so called learned people with big degrees,who has not been able to do just a simple thing order than to talk people. Even they are not able to manage their own errors in their offices.What can we learn from such people.What business areas do they have their names recorded.They should rather go to apostle Safo and learn how to manage a workshop,even a Makola woman who has'nt been to school knows better and manage their stores accounts than such Economist and talkatives. SHAME.
Fake , Bogus and Dispicable !
Author: Chief Adom
Date: 03-14 07:14

I can only advise them to make the local traditional leaders as ceremonial "Mayors" alongside an elected body for their various towns, because the royals are the ones who knows the main problem concerning the development of their towns and subjects better .

The position of district commissioners (DCE`s) must be scraped completely out of the political landscape, since its of no use but an unnecessary cost against the citizens interest.

Also, appointment of "Assembly man" don`t even have to come into the political picture at all.

"E`tan koraa" in democray and sounds too odd!

The royals must be, or form cabinet with local town planners, engineers, police officers, fire service, medical doctors, prosecutors,Public and business Administration etc.

This is the only way to slove the land reform problem, else they ought to forget it!

Towns and cities throughout the country are gradually dying out, as if there is nobody in total control ,and therefore, need to be rescued.

"Dua a, enso aba no ye twa twene".

Federalism is the way forward and not that inapplicable opportunist, and obsolete unitary system currently in use.

Reform now to save tomorrow!
Fake , Bogus and Dispicable !
Author: Chief Adom
Date: 03-14 07:08 

Let Ghanaweb site continue to insult us with the sole aim of disgracing all traditional leaders in the country to suit their political and communist expediencies. But again turn around to copy from our work and advices.

Shame to all of them.

If they continue to manipulate the public against us through their communist eyes, we will also develope a new strategy to destroy them politically and traditionally.

The land belongs to us and not these political thieves and opportunists who are thriving on our properties for their economic survival.
Very Cheap
Author: sasraku-sradaa
Date: 03-14 07:03 

When shall we as a nation move away from cheap politics and embrace the concept of pragmatic and sincere politics?
What has characterised the post Guggisberg era of politics is the fact that , it is geared towards narrow and twisted interests of the so called modern day Ghanaian opposition politician:Once it was not done by us it is wrong. Oh God help us.
Re: Govt Lying About Economy -Economist
Author: kofidajanso
Date: 03-14 06:55 

It is rather unfortunate for an economist of his status come out with such statements. I believe he should see things in the practical way rather than being so theorotical. The adoption of HIPC had itself pushed govt in undertaken various steps to push the economy where it is now. How can a govt shift from infrastructural devt which is the basis for devt? He should not for get that govts of these day interestingly only make policies to attract and encourage its citizenry and foreign companies. The attitudes of people towards govt organisations had led to their privatisations.
Brilliant Stuff
Author: Kusi - Obuasi
Date: 03-14 06:54 

Dr keep up the good work. Expose the lies of these crooks, who miscalculate and misinform the people about the economy. They do that to cover up their corruption, kickbacks, looting, property grabbing and sex scandals not to talk of the cocaine deals
Fake , Bogus and Dispicable !
Author: Nana Fredua Agyemang
Date: 03-14 06:43 

Eh, Ghanaweb and it`s twisting of facts and paraphrasing from other people`s texts!

Always insulting Odumgya and traditional leaders ,but turn around to copy from him and then twist economic and historical facts to where it does not belongs.

To be precise,if Odumgya pops around and ask you questions about what you`ve paraphrased above there from his work, you will not be able to answer.

To know the truth,I entreat all readers here to go back and re-read the original postings from my friend Odumgya on this issue prior to Ghana`s independence day celebration this year and beyond, and you can deduce the truth for yourselves.

This is fake!

Shame on you , Ghanaweb site!

Shame on you, communist web site.

Shame on you, bogus Seckago/Young Bajan/Nii Addotey/Sexy Sweet Molly`s web site!

Shame on you, fake economist`s web site!

They knows their dirty transactions already, which is why they`ve turn around and accusing themselves.

I must tell you,this is not even up to the level of entertainment.

Shame on you for wrongly percieving to be intellectuals!

Shame on you all invoved in this dirty business!
Date: 03-14 06:38 







Re: Govt Lying About Economy -Economist
Author: Aberewatia
Date: 03-14 06:36 

I have always respected the opinion of Dr. Thompson. There is no denying the fact that he speaks eloquently, and seem to know what he talks about. What i take exception to is his inability to forcefully come out with "practical" alternatives, and not only "theoretical" and "idealistic alternatives" remember we dont live in an utopian world.
Author: WISDOM
Date: 03-14 06:22 

These guys seem to think that because they have titles to their name means that they have authority on economics. I can find better economists in Makola women. Whoever said that petrol price increases were unnecessary. Do we ever produce any petrol and do we have control over world prices ? In Britain alone, taxation on petroleum products accounts for over 40% of the pump prices.
Ghana is poor and its no good playing the ostrich by saying we are rich. If by saying we are poor our debts will be forgiven and we could save some money for other purposes why not.
Dr Thompson talks about manufacturing, how many factories has he set up or does he expect the government to set up factories for him to fleece.
Dont try comparing Ghana to Korea, we are different kind of people with different mindsets. Maybe given time and patience, Ghana will catch up. So shut up for your economics does not work in the real world.
Author: Yaw Kusi
Date: 03-14 06:21 

A great economist indeed. I have long believed that the government should shift emphasis from infrastructure development to the production sector; after all what is the use of a road if there are no products to be transported? What use is electricity where there is no industry to be powered? The simple fact the Gov can?t realise that our private sector does not and will not have the capacity to develop the country for decades to come. The only industrialisation policy, which will work in Ghana, would be a government led one. Period. Kuffour will travel around the world a thousand times more and he will come home empty handed.
Economist or Politician
Author: Mama Animani
Date: 03-14 06:20 

Is Dr. Thompson speaking as an Economist or a Politician?
Re: Govt Lying About Economy -Economist
Author: kookooasehene.
Date: 03-14 06:14 

This guy is being selective to the point of being disingenuous and dishonest.
There are most certainly areas of the private sector where credits declined during the period under reference, but there are areas where credits indeed rose. He should have said that.Look at p.46 of the Budget to which he referred. Overall, credit to the private sector increased, chum. Of course one can understand that he was addressing an audience of so-called socialists but he has a duty to be objective.
Author: Kofi Boateng-Philly
Date: 03-14 06:11 

Jus watch your back Dr. Thompson..for daring to expose their lies and deception, incompetence and lackadaiscal way of handling affairs in the country, the Narcotics Peddlers' Party(NPP) will descend their agents and thugs on you....the either file flimsy charges of a coup attemp on you, accuse you of dealing in drugs or they kill you outright..either by a "car accident" or any means your back, Dr. for the NPP will come for you like they did to Ya-Na, Mobilla, our innocent mothers they killed to appease their Kabre shrines in order to win the 2000 your back, DR.
Date: 03-14 06:09 


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