Friday,
March 1, 2013
In his “State of the Nation
Address,” President Mahama gave us to understand that his government would implement
policies and programmes to grow the economy despite the pressure being imposed
on it by such factors as high wage bill, crude oil imports, and others. The
economy is not as vibrant as expected because expenditure has outstripped
revenue.
We’ve heard all the counter
arguments raised by the opposition, especially the NPP, which has also
presented its version of the situation, calling it the “True State of the
Nation Address” and blamed the government for what it calls a high budget deficit.
For instance, that
- the budget deficit recorded last year which
is provisionally estimated at GHC 8.7 billion is the result of the
government’s excessive spending (Dr. Mahamudu Bawumia);
- the government machinery over-spent its
budgetary allocation by Gh¢ 600 million while the Ministry of Youth and
Sports also over-spent its allocation by Gh¢ 300 million, a practice he
described as “completely unacceptable” (Dr. Mark Assibey-Yeboah, an
economist and Member of Parliament for New Juaben South constituency in
the Eastern Region); and
- the economic deficit currently stands at
12.5% of the country’s GDP, according to Dr. Mark Assibey-Yeboah.
Fair enough. The government says
it will cut down on expenditure while implementing measures to raise
productivity. Unless it does so, the economy will slide into a depression that
will stall national development.
In pursuance of cost-cutting, the
government has taken the first step to raise the prices of petroleum products,
which has imposed an additional burden on the citizens because of the removal
of subsidies entailed by the price increment.
The President has also gone ahead
to remove certain benefits for its functionaries in the hope of reducing cost. Cosmetic,
one may say.
As we digest these issues, the
Minister of Finance, Seth Terkper,
will add more to the food-for-thought and fire up public debates on the state
of the economy when he presents the government’s 2013 Budget and financial policy statement to Parliament
on Tuesday, March 5, 2013.
We are being told that “the budget which will be read ahead of
the Independence Day celebrations is expected to focus on massive
infrastructural development, stabilizing the economy, and accelerating growth.”
The
same old story that we’ve been hearing ever since independence? Nothing new to
enthuse over at this point.
But
I cringe at the aspect of “massive infrastructural development.” It is one area
that imposes a heavy burden on the economy and an area that has been so
politicized as to become the golden egg every government wants to lay for the
enjoyment of the electorate in the hope that there will be pay-back time at
election time.
In
truth, development projects have constituted a major chunk of the promises that
our politicians have made all these years, especially since the emergence of
this 4th Republic. Rawlings used it and passed the baton on to
Kufuor. The late Mills jumped on board, creating room for Mahama too to see
development projects as the bait to attract political goodwill.
The
truth, however, is that despite their economic viability, these development
projects have an unfortunate aspect that must not be glossed over: the overarching
presence of abandoned projects almost everywhere. These white elephants have
become a terrible eyesore and a sad reflection on the wickedness of those in
authority using the promise of development projects for political jingoism!!
Almost
every town or city in the country has one or more abandoned development
projects dotting its landscape and reminding the people of the recklessness of
their leaders. This negative sequel of the development project craze must be
addressed. That is why I want to focus attention on it to suggest that the
government’s intention to undertake “massive infrastructural development” must
be re-considered.
I
want to tell President Mahama and his government to hasten slowly on this
score. I don’t think that there is need for such a venture, especially at this
time that the President himself is complaining that the economy isn’t strong.
In his “State of the Nation Address,” he gave us to know that there is enormous
pressure on the economy, meaning that it can’t immediately support any agenda
of the sort.
Of
course, the campaign promises have already been made and the people have
sharpened their fangs, ready to pounce on the promise-makers if they don’t make
good those promises. President Mahama may be forced to begin looking over his
shoulders all too soon.
Already,
the lack of electricity and water has angered the people. Add the recent
increment in the prices of petroleum products to that problem and you can tell
how frightening the situation may be for the government less than two months in
office.
President
Mahama can carve a niche for himself if he re-examines this “massive infrastructural
development” agenda to be announced by the Finance Minister.
Ghanaians
definitely want something new that will indicate to them that he wants to chart
a new course to justify the trust reposed in him by the millions that voted to
place him in office and expect him to act decisively to improve living
standards. Forget about the noise being made by Akufo-Addo and his gang. They
aren’t going anywhere.
President
Mahama has been installed in office and has formed his team to manage the
country’s affairs. That is why it behooves him to begin making a mark instead
of just gearing up to follow the same worn-out, tired, dangerous, and
unproductive paths that his predecessors chose to walk.
I
want President Mahama to do something new. Instead of embarking on this “massive
infrastructural development” (which indefinitely means beginning new projects
all over the country), I want him to turn attention to all projects that have already
been initiated but abandoned and take steps to complete. Investing in such projects
will go a long way to save costs and prove to Ghanaians that he knows how to
solve problems.
The
problem is that paying
contractors alone is a big perennial problem, not to mention the huge cost to
the economy of all these projects. Of course, some may argue that those abandoned
projects have deteriorated to such an extent that they have to be scrapped off
and new ones initiated. Additional costs?
I repeat
that the government should not initiate any development project anywhere in the
country for the next four years, if possible. Allowance can be made for only projects
that are direly needed, especially only those to solve the perennial
electricity, water, housing, and transportation problems. Indeed, some projects
are already ongoing or abandoned in these sectors and should be identified for
completion.
I
want President Mahama to mobilize the required political will and material
resources to complete those abandoned projects. To begin with, he must authorize
an immediate inventory of all those abandoned projects for them to be costed
and earmarked for completion within the period.
I
have in mind those projects that were initiated by previous governments but
left to fate either for lack of funds or at the end of those governments’
tenure. Clearly, some of these projects were initiated as mere political
gimmicks or at the instance of community leaders but couldn’t be completed.
Even though enough had been spent on them, successive governments turned a
blind eye to them either to punish the prospective beneficiaries on the basis
of political ill-will or for lack of interest in them anymore.
Unfortunately,
refusing to complete those projects and initiating new ones will continue to be
a drain on the economy and reflect the reckless abandon with which our leaders handle
national affairs.
I
challenge President Mahama to take the bold step to revisit the development
agenda which brought those projects into being only for them to be abandoned. If
he is able to complete these projects, he will make a better name and endear
himself to the hearts of the various communities than initiating “massive
development projects” only for them to be abandoned after resources have been
sunk into them.
I
know he has made promises to construct 200 Senior High Schools, many airports,
and a lot more that the economy cannot support at this stage. Let’s face the
truth that such promises can’t be fulfilled unless the economy improves. Certainly,
it won’t do so all too soon.
We
don’t want the government to go borrowing more money to worsen the situation
just in an attempt to make good those promises. What we already have in the
various parts of the country must be completed first. Then, the government can
fill the gap with new ones if necessary. No one should attempt to build Rome in
a day!!
No
grand design on paper will change the situation either. What needs to be done
must be done through a conscientious and judicious use of resources. While
taking steps to revive those abandoned projects, the government must implement
austerity measures to prevent
the economy from sliding further. It is only then that public trust and
confidence in it will be retained. Then, it can consider launching its “massive
infrastructural development” when there is enough in the kitty.
The truth is that apart from the astronomical wage
bill (constituting about 60% of the GDP), infrastructural development is the
next major area that drains the economy.
In a political climate where such projects are
either initiated for political expediency and not necessarily on the basis of economic
sanity, the President must tread cautiously to avert the doom that is caused by
the reckless spending recorded for 2012 and previous years.
I shall return…
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E-mail:
mjbokor@yahoo.com
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