GRi BEF News Ghana 27 - 12- 2000

Accra (Greater Accra) 27 Dec 2000

The nation would have crumbled under the adverse international economic climate had it not been for the pragmatic policies of the government to absorb the shocks, Mr Victor Selormey, Deputy Finance Minister said on Friday.

The economic hardships facing Ghanaians are not the making of the government or any individual for the joy of it, he told a news conference in Accra.

Mr Selormey, who is a member of the Mills Campaign Team, said the realities are that the economy as a developing country, is influenced by primary produce like cocoa and gold and imported oil.

"By May this year, the world price of coca fell and that for gold dropped while oil prices shot up creating a balance of payment problem.

To add pain to injury expectations from the donor countries hit the rocks. The donors diverted attention to Eastern Europe and elsewhere making anticipated foreign cash in-flow scarce," he said.

He pointed out that these are economic situations the country has no control over since "we don't determine the price of our own cocoa nor gold as well oil".

The problem was compounded by the demand for foreign exchange and the non-patronage of local products, but due to the pragmatic agriculture policy coupled with good weather, prices of locally produced foodstuff remained stable, Mr Selormey said.

He said it would be the highest point of dishonesty or ignorance for people to twist this reality for political gain while the best that could be done was what the NDC government is doing. "Any other government could not do better. They are economic realities," he said.

The Deputy Minister said in spite of the difficulties on the domestic front, Ghana is the highest donor recipient and has the best managed economy in Africa according to the World Bank ranking.

He said the economic situation is factual, which no government could run away from, adding that it would be deceptive for anyone to use them to raise expectations only for Ghanaians to find out that falsehood does not pay in economic issues.

Mr Selormey urged Ghanaians to vote for Professor John Evans Atta Mills in the presidential run-off to ensure that the economy does not collapse in the hands of an inefficient government.

GRi../