GhanaWeb TV



Single Digit Inflation: Yes, We have Arrived

Tue, 20 Jul 2010 Source: Fela O Fela

…Bring Out the Vuvuzelas!!!

Yes, It's Party Time, Indeed!

Ghana may not have won the FIFA World Cup Trophy, but her leftist/progressive government has just achieved single digit inflation after just a year and half in power.

Coupled with other positive macro-economic indicators, such as stable currency, lowest ever prime rates (the interest rate at which the central bank lends to commercial banks), increasing GDP, lower deficits, greater agricultural and industrial output, and fiscal discipline, etc., Ghana is, once again, on the verge of another economic recovery thus setting the stage, once again, for great tides in the welfare of her citizenry.

For a country of Ghana’s size, given her relatively large population and limited resources, if such strides are not cause for celebration (or least, for political bragging rights), then what are the pursuit of positive achievements for? The current “celebration” is no more an economic achievement than is it a political one.

The debate dates back to the early-90’s when Ghana returned to multi-party democracy whereby the “know-it-all, three-piece-suit, foreign-trained politicians” of the New Patriotic Party could just not find any notable achievements on the part of the reformist government of “locally-bred/home-grown,” (Dashiki, Joromi cum Tie-and-Dye) African garb-wearing, revolutionaries-turned-social democrats as led by the “benevolent dictator” in the person of Flt. Lt. Jerry John Rawlings.

With all the vehemence they could find, the ‘new kids on the block’ (NPP), in their desperate attempt to capture the imagination of the unsuspecting electorate and to present themselves as the best alternative, they trashed everything and anything about the then incumbent NDC government: from tis various infrastructural and reconstructive efforts, social intervention programs to NPP’s much-loathed feasibility studies/pilot programs. They rendered the 19 year rule of JJ Rawlings as a total waste, as they mercilessly flouted their so-called populist government for its deplorable “MACRO-ECONOMIC” achievement and, oh yes, human rights records. It was the first time that the Ghanaian populace and electorates alike, became familiar with western economic indices, such as INFLATION, INTEREST RATES, GDP, GNP, INCOME PER CAPITA, FOREIGN CASH RESERVES, FOREIGN EXCHANGE RATES, G-8, G-20, WORLD BANK, IMF, IFC, HUMAN RIGHTS WATCH, Transparency International , as well as all the ad hoc ranking systems.

Prior to the coming of these latter day saviors from the western hemisphere, Ghanaians were well convinced that political and social stability, the burgeoning economy, the rapidly expanding electrification projects, the progressive and robust educational reforms, and infrastructural development, as well as all other life-endearing, confidence boosting, and life-transforming social intervention programs for such a promising third world country –were the hallmarks or measures of good governance.

Using these same economic indicators, they morbidly ridiculed Rawlings’ Ghana as in comparison to their so-called “Asian Tigers” like Malaysia, Philippines, South Korea, Taiwan, Japan, Vietnam, etc. Believe me, they perfectly employed all the deafening and horrifying fascist schemes until Ghanaians couldn’t take it anymore, and for want of peace of mind and curiosity, threw in the towel and the NPP was voted into power after a much-slugged out second round of voting in the 2000 election. And all throughout the 8-year tenure of the NPP, not a single day went by with a positive turn in these same economic indicators, without the NPP govt. and its numerous propaganda outfits bombarding Ghanaians with their so-called achievements.

Suffice it to say that when it benefits the New Patriotic Party, they are as raucous as ever. As they find themselves ALL OVER THE RADIO STATIONS, ALL THE TELEVISION CHANNELS, ALL OVER THE NEWSPAPERS, ALL OVER THEIR STATE-SPONSORED MEGA RALLIES ACROSS THE COUNTRY with these very same macro-economic indicators “vuvuzelating” their “great” performances in prudent economic management. But now that the NDC, the leftist, socio-democratic government, has beaten the rightist, conservative, pseudo-capitalists NPP so terribly at their own game these NPP folks are now quick to render such fin- fine ecomini-indicators as "iiiiirelevant" and “useless” and “meaningless” in alleviating the plights of the good people of Ghana.

It begs the question, if the NPP knew that such indicators had no effect whatsoever on the price of pure water, do not heal the sick, put money in peoples’ pockets, nor fix the roads and deplorable infrastructure, why were these very indicators the cause that they chose to champion? Kaiiii, I never knew the truth can be so "iiiiritating" to the capitalist in you, NPP --the industrialists and ecomini'sts, and self-made businessmen....hahahaha... LESSONS IN ECOMINI: See, coupled with the now super-stable currency exchange rate of the Ghana Cedi, the much awaited "Singoooool Digittt" inflation would go a long way to ensure the market resistance to price fluctuations and other market forces. That, should any of your very own NPP China bizzziness-men and -women goes to Beijing or Shanghai to import more goods for domestic consumption, he or she can now rest assured that the currency will not devalue causing them to lose their profit margin.

So, when the goods arrive in Ghana, their minds can now be at ease based on the fact that "slowly but surely" their goods would be sold and the VALUE, you can best believe, WILL REMAIN THE SAME.

That, due to the prudent measures taken by incumbent government, by way of food security as per the re-introduced buffer system, massive investment in agriculture and fiscal discipline, inflation has dropped by almost 50% (from 18% to 9.5%)...ensuring that the tendency of sellers and service providers to charge higher prices for their goods and services, respectively, would be curtailed hence a better financial planning, forecasting, and/or financial management on the part of consumers at large. Is that not a Better Ghana, at least, in the making?

This is all brought to you courtesy of the ECONOMIKALLY-PRUDENT Social Democrats ala (N)ice and (D)ecent (C)ongregated-people's party...

Like our neighboring Nigerians go say, "WE HAVE ARRIVED!!"... SINGLE DIGIT INFLATION …IT’S PARTY TIME!!!


Columnist: Fela O Fela