World Bank pledges support for Kufuor's government
Accra (Greater Accra) 17 Jan. 2001
The first budget statement of the new government will be presented in the first week of March, Mr Yaw Osafo-Marfo, Finance Minister-designate, said on Tuesday.
"We are hoping that by the end of February, we'll have put everything together," Mr Osafo-Marfo, a banker and former UN economic consultant said.
He was contributing to discussions on economic co-operation between President John Agyekum Kufuor and the Japanese Ambassador, Hiromu Nitta, at the State House in Accra.
The minister-designate painted an alarming picture of the state of the economy, saying the country's level of indebtedness is unusual and worrying.
"We have a situation where our internal debt is about six trillion cedis representing 20 per cent of GDP."
He said the situation, for now, leaves no choice for the President than to seek debt relief from donors.
This, he said, has been running in the President's statements since his inauguration on December 7.
However, it does not mean that government has declared Ghana a Highly Indebted Poor Country (HIPC).
"We are just making a general appeal for debt relief to support our budget in order to carry on."
Government, he said, is carefully examining the crucial issue of whether Ghana falls into the HIPC initiative and would announce its findings soon.
Dr Kofi Konadu Apraku, minister-designate for Trade and Industry, buttressed the appeal to Japan to "give Ghana a new lease of life," by releasing outstanding grants to the government.
GRi../
Send your comments to news@ghanareview.com
Accra (Greater Accra) 17 Jan. 2001
Mr James D. Wolfensohn, President of the World Bank, has pledged the bank's support for President John Agyekum Kufuor's government.
"I want to assure you that the World Bank will be ready to support you in the months and years to come, and we look forward to a close and productive relationship with you," he said in a letter to Mr Kufuor released to the press on Tuesday.
Mr Wolfensohn told Mr Kufuor that as he takes office, he would be turning attention to the problems facing the country.
"As you have been articulating so clearly during the election campaign, there are some very serious economic challenges to be faced in Ghana.
"Our Country Director in Ghana, Peter Harrold, has explained to me the policies that you have been espousing, and it is clear that we will be able to support you and work well with you and your team as you move to implement these policies."
Mr Wolfensohn also congratulated Mr Kufuor on his election and all others involved in the vote for the way it was conducted.
"It was a real victory for democracy in Africa, and all Ghanaians can be justifiably proud of what has just been achieved in your country," he said.
Send your comments to news@ghanareview.com
Accra (Greater Accra) 17 Jan 2001
Dr Kwesi Ndoum, an Economic and
Management Consultant, on Tuesday described the Ghanaian economy as
"primitive" saying the country lacks policies that will add value to
her primary products.
"Our fundamental problem is
that we are still producers and exporters of primary commodities in the 21st
Century," he said on a GTV programme, "Public Concern",
monitored by Ghana News Agency.
He was talking on the state of the
economy and steps the new government can take to bring more sparkle into it.
He said Ghana has over relied on
her natural resources without taking the necessary measures to upgrade and
refine them into finished or semi-finished products.
Dr Ndoum said countries in other
regions have moved from this stage to the manufacturing and, advanced to
technological economies, but Ghana's economy has remained stagnant.
He recalled that since the early
1960s, succeeding governments had given political interpretations to programmes
started by previous governments and never sustained development plans that were
initiated.
"As soon as one government
ends, everything of it becomes bad and must be thrown over board for angelic
programmes by the new one."
Dr Ndoum described trade
liberalisation as a theoretical policy by the developed countries to control
the economies of developing nations countries while they practise a controlled
economy.
For instance, strong economic
powers need to negotiate with their counterparts to sell quotas agreed upon in
their countries, he said, adding that Japan finds it difficult to enter the
American market to trade without any hindrances.
Dr Ndoum, therefore, stressed the
need for limited control on trade to help sustain local industries and their
capacity to remain competitive.
He said the Central Bank should
initiate measures to entice workers to save, adding that no country can develop
with a low saving rate of between seven and 13 per cent.
To improve the situation, Dr Ndoum
suggested a tax incentive package for monthly saving of at least 10 per cent of
income.
He said with a work force of about
eight million, minimum savings of 10,000 cedis monthly would generate 80
billion cedis that could be channelled through the private sector.
Dr Ndoum noted that over the past
10 years, government expenditures have been on the rise while income has been
on the decline but the government managed to sustain the economy with donor
inflows.
In recent times, however, donor
support has not been forthcoming, thus creating huge deficits.
Dr Ndoum expressed optimism that
Ghana's economy will survive when issues of the economy are addressed on a
non-partisan basis.
GRi../
Send your comments to news@ghanareview.com
Accra (Greater Accra) 17 Jan. 2001
The following are the
average-inter bank exchange rates of the cedi equivalent to the dollar and
derived rates for other major foreign currencies as announced on Wednesday January
17, by the Ghana Association of Bankers.
Currency Buying Selling
US Dollar 6,789.00 7,002.91
Pound Sterling
9,985.94 10,303.38
French Franc
973.93 1,004.01
Swiss Franc 4,151.12
4,278.99
Deutsche Mark 3,265.62 3,368.33
Canadian Dollar 4,509.75 4,648.49
Japanese Yen
57.80 59.59
Dutch Guilder
2,899.01 2,988.57
S/African Rand 872.92 898.05
Euro 6,388.14
6,588.26
CFA 9.74 10.04
Naira 67.87 70.01
Ecowas/WAUA 8,975.45
-----------
GRi../
Send your comments to news@ghanareview.com