Collectively, we can restore stability – Kwame Pianim

A collective approach could curb the deteriorating economic situation in the country, economist Kwame Pianim has said. As the cedi’s persistent depreciation continues to erode investment assets and confidence, he said no one is spared the current economic crisis; hence, all must help in bringing relative stability back into the economy. “All of us need to help because as the cedi slips, our businesses lose external value. We should all help to make sure that stability is there, so we don’t destroy the assets we have every three to four years,” he said. He spoke during the 25th-anniversary lecture and dinner of the Public Utilities Regulatory Commission (PURC) in Accra and added that for an institution like PURC, its work is almost impossible without relative microeconomic stability. The country is currently grappling with runaway inflation of more than 37 percent and rising as prices of basic commodities continue to spiral. The cedi has also depreciated over 50 percent against the United States dollar, while public sector debt – expected to reach 104 percent of GDP by year-end, according to the World Bank – has been described as distressing by rating agencies. Explaining how these macroeconomic indicators affect Ghanaians, Mr. Pianim said had the cedi been stable, for instance, the Teachers Fund – a retirement supplement and solidarity scheme for the Ghana National Association of Teachers – would now have been a billion-dollar investment. Meanwhile, in a bid to restore economic stability, government has been engaging the International Monetary Fund on a bailout programme. The mooted U$3billion balance of payment programme, if concluded, according to government, will put the economy back on the trajectory of growth. Many analysts and economists, however, hold the view that IMF intervention will only provide temporary relief. They believe that cutting down the size of government and non-capital public expenditure, efficient revenue mobilisation, transparent and value-for-money use of taxpayer’s funds, as well as a well-thought-out export strategy, could provide much more viable and enduring solutions. Building a strong, independent PURC The PURC regulates power and water utilities in the country. “We need you to continue being strong, do the work the way it should be done and stand up for what you believe in,” Mr. Pianim, who served as PURC’s board chair between January 2003 and March 2008, further noted. He warned that failure to do this could derail the gains that have been made and usher in another era of legacy debts. He further charged the Commission to take measures that safeguard water quality, especially in the face of the galamsey menace. “In two decades to come, water is going to be a scarce commodity in the world; countries will fight over water. Let us start protecting ours now.” For his part, Board Chairman of the PURC, Ebo Quagrainie, noted the steps are being put in place to transform PURC into a modern-day utility regulator. Among them are included enhancing transparency and accountability and the establishment of a Centre of Excellence in Public Utility Regulation. The Centre – to be set up in partnership with the Ghana Institute of Management and Public Administration, Mr. Quagrainie explains, will contribute to capacity building in the field of utility regulation on the continent when established. The anniversary lecture and dinner was themed ‘25 Years of independent utility regulation in an emerging economy: Positioning PURC as a model of excellent utility regulation on the continent’. It brought together past and current staff, former board members and industry experts to celebrate the Commission’s achievements and contributions since its establishment in 1997. Participants included the Omanhene of Asante Asokore, Nana Susubribi Krobea Asante; Co-Founder and Executive Partner of Arthur Energy Advisors, Harriette Amissah-Arthur; Executive Director of Institute for Energy Policies and Research, Kwadwo Nsafoah Poku; and Board Chairman of United Bank for Africa (Ghana) Limited, Kweku Awotwi.

A collective approach could curb the deteriorating economic situation in the country, economist Kwame Pianim has said. As the cedi’s persistent depreciation continues to erode investment assets and confidence, he said no one is spared the current economic crisis; hence, all must help in bringing relative stability back into the economy. “All of us need to help because as the cedi slips, our businesses lose external value. We should all help to make sure that stability is there, so we don’t destroy the assets we have every three to four years,” he said. He spoke during the 25th-anniversary lecture and dinner of the Public Utilities Regulatory Commission (PURC) in Accra and added that for an institution like PURC, its work is almost impossible without relative microeconomic stability. The country is currently grappling with runaway inflation of more than 37 percent and rising as prices of basic commodities continue to spiral. The cedi has also depreciated over 50 percent against the United States dollar, while public sector debt – expected to reach 104 percent of GDP by year-end, according to the World Bank – has been described as distressing by rating agencies. Explaining how these macroeconomic indicators affect Ghanaians, Mr. Pianim said had the cedi been stable, for instance, the Teachers Fund – a retirement supplement and solidarity scheme for the Ghana National Association of Teachers – would now have been a billion-dollar investment. Meanwhile, in a bid to restore economic stability, government has been engaging the International Monetary Fund on a bailout programme. The mooted U$3billion balance of payment programme, if concluded, according to government, will put the economy back on the trajectory of growth. Many analysts and economists, however, hold the view that IMF intervention will only provide temporary relief. They believe that cutting down the size of government and non-capital public expenditure, efficient revenue mobilisation, transparent and value-for-money use of taxpayer’s funds, as well as a well-thought-out export strategy, could provide much more viable and enduring solutions. Building a strong, independent PURC The PURC regulates power and water utilities in the country. “We need you to continue being strong, do the work the way it should be done and stand up for what you believe in,” Mr. Pianim, who served as PURC’s board chair between January 2003 and March 2008, further noted. He warned that failure to do this could derail the gains that have been made and usher in another era of legacy debts. He further charged the Commission to take measures that safeguard water quality, especially in the face of the galamsey menace. “In two decades to come, water is going to be a scarce commodity in the world; countries will fight over water. Let us start protecting ours now.” For his part, Board Chairman of the PURC, Ebo Quagrainie, noted the steps are being put in place to transform PURC into a modern-day utility regulator. Among them are included enhancing transparency and accountability and the establishment of a Centre of Excellence in Public Utility Regulation. The Centre – to be set up in partnership with the Ghana Institute of Management and Public Administration, Mr. Quagrainie explains, will contribute to capacity building in the field of utility regulation on the continent when established. The anniversary lecture and dinner was themed ‘25 Years of independent utility regulation in an emerging economy: Positioning PURC as a model of excellent utility regulation on the continent’. It brought together past and current staff, former board members and industry experts to celebrate the Commission’s achievements and contributions since its establishment in 1997. Participants included the Omanhene of Asante Asokore, Nana Susubribi Krobea Asante; Co-Founder and Executive Partner of Arthur Energy Advisors, Harriette Amissah-Arthur; Executive Director of Institute for Energy Policies and Research, Kwadwo Nsafoah Poku; and Board Chairman of United Bank for Africa (Ghana) Limited, Kweku Awotwi.