Christmas, New Year Holidays Cost 396 Billion Cedis

Accra (Greater Accra), 14 Jan.,

The General slow-down in economic activities within the two weeks of Christmas and new year cost the nation an estimated 396 billion cedis in lost productivity, a survey by an economic development consulting firm in Accra, said today. According to Africanomics, the consulting firm, "the actual loss to the economy could be substantially higher since the study looked only at lack of normal activities on week days excluding factors such as the use of government equipment and facilities for private purposes during the season." The firm concluded that these findings "have serious implications for public policy and vision 2020 in particular." This is because productivity growth in the country has been a problem in the recent past following a relatively impressive growth record in the mid-1980's. These could be seen in the fact that from 1980 to 1983, productivity declined by an average of 6.4 percent each year but the trend reversed to an annual productivity growth of 2.9 percent from 1984 to 1987 due to the use of previously idle capacity. The rate has since then been 1.1 per annum with declines occurring in 1988 and 1994 as a result of inefficient use of available resources such as time and equipment. The report said besides worker attitudes, other factors militate against the substantial and sustainable growth in the nation's productivity. These include long queuing at tro-tro stations, banks, post offices, pervasive vehicular traffic and outmoded business practices such as the physical payments of utility bills rather than mailed cheques. Others are use of public equipment and facilities for private purposes during office hours and frequent power outages, especially in Accra. "These practices have hidden costs in the form of depressed income growth for the nation". It said power outages, for example, reduce income generation by an estimated 15 percent per annum for businesses, especially in the urban areas, while government is unable to finance important projects due to less revenue. "It is therefore imperative that government, employers and workers tackle the problem of productivity as a precondition to attaining the modest targets of vision 2020". The report stressed the need to address issues such as annual leave policies, especially, 'leave bunching', where all employees of a firm go on leave at the end of the year. "Such complete shut downs only undermine Ghana's competitive standing in the global economy and slows the development process." Mr.. Nii Noi Thompson, Chief Economist of Africanomics, said his outfit would in the future estimate the monetary value of other factors that hinder the nation's development. This will enable the public to "get a clearer view of the harm we are doing to ourselves and future generations".

Gri.