GRi Business Economics & Finance 30 - 03 - 2002

Push for total debt cancellation - High Commissioner

Govt. mechanising clearance of imports - Osafo-Marfo

Govt warned against privatising vital state institution

 

 

Push for total debt cancellation - High Commissioner

 

Accra (Greater Accra) 30 March 2002 - Ghana's High Commissioner to the United Kingdom, Mr Isaac Osei has called on the Jubilee Debt Campaign to go beyond their mandate of seeking relief from debt payments and servicing to push for the total cancellation of debts of African countries.

 

He said this would enable African countries to start a new relationship with the developed countries under the New Partnership for African Development (NEPAD) initiative on a clean slate. Mr Osei made the call at the Jubilee Debt Campaign's annual general meeting in London, a statement released to the Ghana News Agency in Accra on Friday said.

 

The Jubilee Debt Campaign UK is a coalition of various non-governmental organisations canvassing for debt relief for the world's poorest countries through fair and transparent processes. He said there was no way most of the world's poorest countries could pay their debts and added that the massive and unsustainable external debt remained a major obstacle to growth.

 

"It deters private investment, threatens the sustainability of reforms, disrupts the smooth functioning of the state and calls into question the very survival of some poor countries' economies" he stressed.

 

Mr Osei said that the challenge facing the international community was how to deepen global integration, without impairing the interest of poor countries and argued that it was in the long-term interests of the rich countries of the north to offer the rest of the world the opportunity afforded by economic integration, just as it was in the interest of poor countries of the south to exploit them".

 

This, he said, could be done by a combination of debt cancellation, increased aid and freer trade. Touching on efforts being made to resuscitate the Ghanaian economy, Mr Osei told his audience that the Government had finalised the preparation of the Ghana Poverty Reduction Strategy (GPRS) for 2002-2004, with greater emphasis on participation of key partners, including civil society, the media, private sector, all arms of government, development partners as well as decentralised agencies.

 

He said the priorities over the period were centered on infrastructure development, modernised agriculture based on rural development, enhanced social services, good governance, private sector development and poverty reduction with a view to the creation of wealth at a faster rate in order to reduce poverty in a sustained manner.

 

The High Commissioner pointed out that the bold economic reforms introduced by the government had made Ghana become one of the first countries to reach the decision point under the Highly Indebted Poor Countries (HIPC) initiative in less than a year. Dr Ashok Sinha, Coalition Co-ordinator of the Jubilee Debt Campaign, urged the Government of Ghana to vigorously pursue the on-going current reforms to reduce poverty in the country.

GRi../

 

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Govt. mechanising clearance of imports - Osafo-Marfo

           

Accra (Greater Accra) 30 March 2002 - The government is in the process of mechanising the clearance of imported goods into the country, the Minister of Finance Mr Yaw Osafo-Maafo told a meeting with the staff of the Ghana High Commission in London on Thursday.

 

According to a statement from the High Commission, the Minister said the new system would eliminate the present laborious manual processes, which were often fraught with corruption, over and under-invoicing of imported goods.

 

Mr Osafo-Maafo said the restoration of macro-economic stability, coupled with the institution of a prudent fiscal discipline within one year of the NPP administration had won the confidence of the international financial community.

 

On the proposed scheme to enable importers to pay duties on imported goods overseas, the Minister explained that the scheme would enable the country to derive revenue in foreign exchange and hasten the process of clearing goods from the country's entry points.

 

Mr Osafo-Maafo said the government would not get involved in the business of tourism, but would rather create the infrastructure and enabling environment to encourage potential investors in the hospitality industry. He expressed the hope that Ghanaian diplomats would continue to work hard to ensure the flow of investment into the country.

 

Mr Kwesi Abeasi, Chief Executive of the Ghana Investment Promotion Centre said although there had been a slow down in foreign direct investment due to the September 11 terrorist attacks on the United States, the GIPC was working towards making itself a one-stop shop for potential investors.

 

He said with the current stable macroeconomic environment, it was likely that the flow of foreign direct investment would increase sooner or later. Mr Abeasi said the GIPC had also decided to task the foreign missions with the responsibility of co-ordinating investment drive abroad in efforts to attract more investment into the country. The London Mission will handle Europe, Malaysia-Asia while the Mission in the US will take care of the Americas.

GRi../

 

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Govt warned against privatising vital state institution

 

Sekondi (Western Region) 30 March 2002 - Mr Siedu Adamu, Member of Parliament (MP) for Bibiani-Anhwiaso-Bekwai constituency on Wednesday warned the government against the privatisation of vital state institutions because it could impact negatively on the country's economy. He cited the Ghana Water Company (GWCL), Ghana Commercial Bank, (GCB) Ghana Telecom (GT) and the National Investment Bank (NIB).

 

The MP said the prescriptions of the World Bank, International Monetary Fund (IMF) and other international financial institutions that were prompting the government to privatise those bodies should not be implemented wholly.

 

Mr Adamu was speaking at a day's public forum on this year's budget organised by Friends of the Nation (FON) and International Social Development Centre (ISODEC) both non-governmental organisations, at Sekondi.

 

He warned the government against the removal of subsidies on electricity and water since that would affect the incomes of workers. Mr Adamu also called on the government to increase the salaries of workers to enable them to cope with the rising cost of living and to address all other labour issues.

 

Mr Kwesi Biney, District Chief Executive of Ahanta West, speaking on prospects for growth, said that the country's unstable electricity supply was likely to affect the growth of the economy.

 

He noted that businesses could not flourish in an environment of frequent power cuts since this would lead to losses in both human and economic gains. He, therefore, called on stakeholders in the power supply sector to work assiduously towards regular power supply.

 

Mr Biney noted that any attack by the US on Iraq, could result in increase in the price of crude oil on the world market and its resultant effects would be felt in the country.

GRi../

 

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