CPP calls for alternative policy direction

The Convention People’s Party (CPP) has called for a shift in the country's economic policy direction to avoid over dependence on development assistance.

The party said the mundane economic growth strategy of inflation targeting, social austerity or price stabilisation that stifled growth and impoverished Ghanaians must be changed.

The Chairperson of CPP, Samia Nkrumah made the call at a joint meeting between the party and the Trade Union Congress to mark 104th Founder’s Day on Friday.

“For decades Ghana’s economy has been managed for the benefit of few citizens or in the interest of a particular party or on behalf external interests, leaving a vast majority of people lacking social and economic amenities,” she said.

She questioned why Ghana assumed fiscal austerity measures, which come with high interest rates, removal of subsidies, freeze on employment and public sector wages as a condition for receiving development assistance.

Ms Nkrumah called on government to review its trade liberalisation and fiscal austerity policies, saying “it undermines growth, contracts the economy, restricts exports.

“Our development partners subsidize their manufacturing and agricultural produce to undermine free and fair competition in international trade but demand that we remove subsides in those sectors,” she said.

Ms Nkrumah pointed out that Ghana’s underdevelopment and impoverishment had been possible with the complicity and collaboration of policy makers and political leaders who sacrificed national interest for personal gains.

The CPP called on the nation’s leaders to change the current direction of development policy or face growing political divide between those who seek personal prosperity and those who seek the prosperity of the nation.

The CPP said economic development policy shift was necessary for the achievement of national dignity, economic freedom and prosperity.

It further stated that this would be possible if government was to appreciate that Ghana’s exchange rate policy undermined economic growth and development, saying employment creation not inflation targeting should be the development focus.

The party also observed that an expansionary monetary policy with low interest rates to promote efficient and strategic investments in the productive and social sectors would reduce deficits and control inflation in the long term.