The free fall of the Ghana cedi-one side of the die

Read Article

Comment: By the Numbers

Owura Kwaku Ntiamoah
2014-02-07 22:53:21
Comment to:
The free fall of the Ghana cedi-one side of the di

I like it when someone crunches the numbers and tries to use them to explain a phenomenon. Many years ago when I was working on a Master's program, one of my professors directed me to a rather tiny book. It was called "How to Lie With Statistics". That book was an eye-opener. I loved it so much that I kept it, and I still have it somewhere in my tons of books. I can tell you that one school is better than the other because 100% of its students gained admission to college, whereas only 70% of the other school's students gained admission to college. But what if in real numbers the school I classified as the better school had only one student and the school I rated as second had ten students? Would you still consider my classification scheme as being accurate? The numbers-crunching game sometimes doesn't tell the entire story. So it is with this article. The South African Rand has truly not done too well vis-a-vis the dollar. But the South African economy is a much more developed economy than that of Ghana, and is able to absorb much of the shock that is attendant to the variations in the currency. The Canadians, like the Chinese, play fast and loose with the CAD so that Canadian goods will not be too expensive on the US market. Mind you, without the extremely profitable US market some countries will clearly not be in existence. The Nigerian Naira has been able to hold somehow steady against the dollar not because of any excellent policies pursued by the Goodluck administration, but because the US is the major buyer of Nigerian oil; and Nigeria has been an accidental beneficiary of the steady (or, in fact, the rising) prices of oil.
Ghana, on the other hand, is not dependent on one major export commodity. So, but for the stunted and bad economic policies of the Mahama administration, the cedi could have held its own. I am not a member or a die-hard supporter of any political party, but I can tell you that the policies pursued by the Kuffuor administration, although not perfect, was a zillion times better than the policies of the current administration (that is, if they can be called policies).
Mr. Ussif, as you noted, people who receive pension payments periodically receive COLA (Cost of Living Adjustments). Ask this administration if they even know the meaning of COLA.

This article is closed for comments.

Owura Kwaku Ntiamoah on Feb 7, 22:53