Mr. Issahaque Munawar, the Wa East Constituency Secretary for the National Democratic Congress (NDC), has stated that, Dr. Mahamud Bawumia, the New Patriotic Party (NPP) vice presidential candidate for the 2012 general election, has misled Ghanaians in his recent analysis of the state of the country’s economy.
Mr. Munawar, an Economics Teacher at the T. I. Ahmadiyya Senior High School in Wa, said Dr. Bawumia ought to have known that cost of living was never calculated in vacuum but in relation to household wages.
Addressing a press conference in Wa at the weekend, he noted that if household wages lagged behind hikes in prices of goods, then he could talk about high cost of living in the country.
He said due to the successful implementation of the Single Spine Salary Structure (SSSS) by the NDC government, average wages have risen above prices leading to an improvement in the living standards of the average Ghanaian, and all including Dr. Bawumia should appreciate that.
He said the government had sustained single digit inflation for over 23 months, and any challenge on the effects of inflation must come with comparative data, tracing the trends with regards to the relationship between inflation and interest rate as well as cost of living and exchange rate.
He listed prices of commodities in the Wa Market as at the end of 2000 and 2008 to buttress his assertion of a higher cost of living under the NPP than the NDC.
Mr. Munawar said cost of pure water as at the end of 2000 in Wa was 0.01 pesewa as against 0.05 pesewas as at the end of 2008 indicating an increase of 400%.
He said cement was GH¢2.80 in 2000 but shot up to GH¢10.10 in 2008 respectively with an increase of 261% while STC fare from Wa to Accra shot from GH¢2.80 in 2000 to GH¢22.00 in 2008 indicating 685% increase.
Other commodities he listed include ideal milk 0.08 pesewas in 2000 as against 0.85 pesewas in 2008 indicating 960% increase, a bag of maize GH¢16.00 in 2000 as against GH¢80.00 in 2008 indicating 400% increase as well as GH¢10.00 per a bag of rice in 2000 as against GH¢80.00 in 2008 indicating 700% increase.
According to Mr. Munawar, a gallon of petrol was 0.64 pesewas in 2000 as against GH¢5.70 in 2008 indicating 790% increase with a lifeline electricity per kilowatt hour pegged at 0.40 pesewas in 2000 as against GH¢5.00 in 2008 indicating 1,150% increase.
Mr. Munawar said it was improper to calculate cost of living solely based on rising prices and not in respect of wages, pointing out that while the minimum wage in 2000 could purchase five tins of ideal milk, it could only purchase two tins of the same commodity in 2008.
In the same way while the minimum wage in 2000 could purchase the lifeline electricity per kilowatt hour, one needed twice the minimum wage in 2008 to purchase the same lifeline, he stated.
Mr. Munawar said Dr. Bawumia misled Ghanaians by taking oil from Ghana’s Gross Domestic Product (GDP) and cocoa from crop production.
He said Ghana was touted as the fastest growing economy worldwide and there was no need for anybody to disaggregate the components to make comparisons which according to him debases the whole argument to political rhetoric.**
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