Govt cannot be sole provider to private sector - JAK

The Government on Tuesday promised its unflinching support for the private sector but stressed that it must not be seen as the sector's sole customer.

"Indeed, the sector should be cautioned not to expect to be spoon fed by government even when it is not performing as expected," President John Agyekum Kufuor said.

He was speaking at the opening of the Third National Economic Dialogue (NED), which seeks to evolve a broad-based consensus with stakeholders in an effort to accelerate national development.

It is under the theme: "Building A Growing Economy Together." Politicians, academicians, the media, economists and the public are attending the event.

There would be presentations by the Private Enterprise Foundation, Trades Union Congress (TUC) and the Minority Leader.

The President noted that the private sector was doing quite well but asked them to be market sensitive on both the local and foreign fronts.

"This is the way forward for the private sector to succeed," he said. He said the sector had shown its preparedness to lead the economic growth by sharing ideas with government at various forums.

President Kufuor praised the services sector, which, he noted, remained relatively strong with the agricultural sector also showing marked improvement.

President Kufuor said government would continue to streamline the tax and business systems and create an environment where business became more efficient and profitable.

He said in this regard, the removal of duties on import on computer parts had resulted in vigorous production activities in the assembling of computers locally.

"This is opening job opportunities for our youth and it is hoped that the reduction of stifling bureaucratic practices would lead to expansion of the formal economic sector."

Commenting on the NED, President Kufuor said some people were sceptical and thought the economic dialogue was going to be another talk shop or that his administration would lack the political will to implement recommendations made.

"This is the third Dialogue, so it must have become clear that the scepticism was unfounded...."

He said a positive example of joint commitment borne out of the NED was the partnership in governance reflected in the recent decision reached on the minimum wage by government, employees and labour.

"It is the hope of government that the dialogue would continue to search for lasting solutions to enable all stakeholders to work in the same direction to enhance the quality of life of our people."

President Kufuor said pursuant to the first, second and the current NED, it was imperative to develop a new work ethic that would ensure that business communities succeeded.

In this, four basic rules must be observed. "First budding business persons should plan measurable goals, the nation must take a second chance to look at cultural practices that take too much of critical time.

"Cultural practices like funerals and mourning as well as extended family demands must be looked at again.

"Also we must develop and inculcate in us the third principle, which is the savings habit... as well as adjust to modern business practices."

President Kufuor explained that the low savings rate in the economy tended to be explained away with the paucity of income. Whereas there was some truth in this, this explanation could only be part of the truth, he said.

"We should be providential in our expenditure so as to leave a margin of whatever we earn for the future of our children, our retirement or for a rainy day."

He said in the short term, government was seeking to lead society and the economy into cultural transformation and modernization.

"This should engage the attention of all in the society - government, employers, labour, students, the media and the entire citizenry should be part of this drive."

Dr Paa Kwesi Nduom, Minister of Energy and a member of the NED Coordinating Committee, said it was important to note that the National Economic Dialogue was not just about narrow economy.

"This is the only broad-based national dialogue Ghana has that brings together people from all walks of life ... in consultation and to shape a way forward.

"This national dialogue does not belong to anyone, institution, government agency or sector of the economy. It belongs to all of us."

He said Ghana has begun a journey of shedding its HIPC mentality so that "we can become builders of wealth that can be shared by all Ghanaians".