$1,000 dollars per capita by 2010 - Ndoum

Dr Paa Kwesi Ndoum, Minister of Economic Planning and Regional Cooperation, on Thursday said the 1,000 dollar per capita income a year target set for 2010 was achievable and not over ambitious.

He was speaking at a national durbar at Ho to mark the United Nations International Day for the Eradication of Poverty under the theme "Promoting a Culture of Long term Savings, Social Security and Insurance".

A scheme with the objective of promoting savings, social security and insurance was also launched at the durbar. Dr Nduom said the government would, therefore, create the atmosphere for the private sector to grow rapidly to contribute to attaining the target. He regretted that Ghana that was richer at independence than now had been overtaken by countries that had the same growth figures about 40 years ago. Dr Nduom said for example Ghana's per capita income is one-15th of that of South Korea, which had the same economic conditions as Ghana at independence.

He regretted that more than 90 percent of Ghanaians still survive on less than one dollar a day. The Minister said the government's programme to tackle poverty recognises growth as a necessary requirement for sustained poverty reduction.

He listed priority areas as infrastructure development, rural development based on modernising agriculture, enhanced social services focusing on education and health, good governance and private sector development. Dr Nduom said there was the need to promote and mobilise domestic savings for investment in addition to developing innovative forms of social protection.

"This is the best way to create a pool of investment capital for our enterprises. We cannot continue to think that some foreigners will bring their capital to develop Ghana", he stated.

Dr. Nduom said the Scheme devised by the Council of Indigenous Business Association (CIBA) would be a significant boost to the government's policy of promoting and mobilising domestic savings for investment and social protection.

He said only 800,000 workers, mainly from the formal sector were covered by Social Security and National Insurance Trust (SSNIT) while workers in the informal sector, who formed about 70 per cent of the workforce in the country were left out in the scheme.

Mr Ralp Ameyaw, Executive Secretary of CIBA said the Scheme, which would be operational next year, would cover health needs and insurance against old age for its members from about 20 associations.

The associations include, dressmakers, garage owners and staff, hairdressers, jewellers, caterers and exporters. Mr Ameyaw said projected contributions of 2,500 cedis a day, 12,000 cedis a week or 50,000 cedis a week would be disbursed to the various component facilities under the scheme.

He said managers of the scheme would be guided by controls to ensure accountability. Ms Gifty Antekyi Area Co-ordinator of SNNIT in Accra said the Trust was carrying out a study on the informal sector and on the submission of a report it would devise means to rope in many workers in that sector in its schemes