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Any justificationfor Ghana’s rising public debt?

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One of the countries in the world that owes a lot in terms of public debt is the United States of America which is about the richest and the most powerful country occupying the surface of the earth.

Even though the United States owes a huge debt to many countries in the world, it cannot be said that it is threatening the existence of its citizens because it uses the money in a manner that helps to cater for the interest of the American people. In other words, as long as a country that owes huge public debt is able to invest its resources wisely and undertake productive ventures with the money borrowed, it will go a long way to solidify the lifestyle and standard of living of its people.

It is only when money that should be well invested is wasted that we can say the future will become bleak for the country concerned. If money is borrowed in huge quantities but utilised to undertake tremendous development projects which go to enhance the productive capacity of the economy, it will not be seen as waste, but a form of investment that will ultimately influence the country’s direction of growth in a positive manner.

Developmental government programmes

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If this is the case, then we need to be careful about how we crucify certain governments for going in for money for developmental purposes. If a country, like Ghana, borrows so much money without a corresponding record of investment, then people must begin to show concern about this trend. But, if on the other hand, what is borrowed, even if high, is used to undertake programmes that will be in the interest of the country, then we need not be worried over such a situation.

Due to the over-politicisation of issues in this country, matters concerning borrowing have always been overstretched beyond reasonable limits of analysis such that sometimes, we wonder whether to sit and fold our arms while we could have gone in to borrow money to stimulate growth in certain parts of the economy. There is no doubt that we need to be careful about borrowing but if it is used to resuscitate and strengthen the economy for a more positive productive growth, we need to embrace it.

Free SHS and TVET

If more debts are contracted to add to our total debt stock but there is no basis for such a development, then we all have to show concern about it, but if the debt stock is going up because of investment in areas such as road construction, strengthening of the health sector, building of educational infrastructure, especially the free SHS and TVET, then we need to put aside all jokes and analyse issues in the right way so that we would all come to the right and acceptable conclusion.

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Current debate

A current debate ongoing among certain individuals and groups of people in the country is the rising public debt which has hit a high level of GH¢286.9 billion. This figure appears to be very high but did not come out by chance. Rather, it is the result of a combination of factors which have brought about this huge public debt.

A number of reasons can account for rising public debt. One such factor is that if in the past things were not managed well, the result will be a rapid rise in the debts facing the nation. Debts may be accrued in form of investment or rapid construction of infrastructure to facilitate socio-economic development.

When this happens, the development that has taken place can help to generate extra incomes which in turn may cover the debts previously incurred. On the other hand, if previous accumulated debts are not put to good use in form of investment the result will be escalating the level of public debt. Again, some of the debts came about as a result of judgement debts and unreasonable interest rates incurred in connection with some deals connected with some of the power agreements contracted in the past.

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Current public debt

Ghana’s current debt of GH¢286.9 billion represents 74.4 per cent of the country’s gross domestic product. On the face of it the debt looks too high but did it just rise like that? Certainly, no.

Available records show that the country’s public debt more than tripled between 2012 and 2016. It will, therefore, stand to reason that the numerous debts that were incurred between 2012 and 2016 could not be invested well as a result of which the public debt level kept getting higher and higher.

In a way, this unfavourable economic situation greatly impacted on the lifestyle of the people in the country and this together with non-availability of adequate electricity made economic life unbearable, hence the massive votes against the then NDC led government in December ,2016.

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Surviving economically

The people in this country must continue to survive economically and live well. For this reason, the Akufo-Addo administration has negotiated for more loans to help construct more roads and other forms of infrastructure in form of schools, hospitals and other development projects.

The implementation of the free secondary school system which is good for the country has also affected the debt stock of the country. The free SHS, free Technical schools and free Vocational schools have led to the accumulation of some billions of Ghana Cedis.

Some of these covered water and electricity extension projects in various parts of the country. For example, for the first time Tamale in the Northern Region can now boast of a beautiful interchange. Such interchange projects have been duplicated in places such as Tema, Obetsebi-Lamptey Circle in Accra and Nsawam area.

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COVID-19 pandemic

Just as things were moving on well under the Akufo-Addo administration, the pandemic known as COVID-19 hit the world including Ghana, throwing out of gear all infrastructure programmes that had been planned for the country.

The COVID-19 further affected the revenue base of the country and increased expenditures to further higher levels. This is what has led to the debt to GDP ratio of 74.4 per cent as of November 2020.

These and many other challenges have contributed to the economic problems facing the country. For many countries in the world, including France, Britain, USA, Germany and others, economic conditions have not been easy. What this means is that things are not easy. Thus, the situation calls for prudent economic management and implementation of programmes.

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In spite of all these, Ghana as a country has done well in managing its economy, especially in the light of the COVID-19 pandemic which has led to the collapse of many economic and business activities in the country. Small businesses for example are being supported by the National Board for Small Scale Industries (NBSSI).

Mobilisation of resources to carry out development projects in the country has not been easy but with great determination and commitment, irrespective of the challenges, the Akufo-Addo administration is likely to make it to the admiration of all Ghanaians.

Dr. Kofi Amponsah-Bediako

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Features

Press freedom & the bearded goat

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journalists covering assignment

THE journalist is a hunter. He goes after human rats and grasscutters personified, matters about whom he can salt and spice and present as news. The fatter and juicier the catch, the better, because sensation is essentially our cup of tea.

Sikaman Palava
Sikaman Palava

Our job is to sell news and sell it in grand style.

Because the journalist is a hunter and is created with a special kind of nose for sniffing out news, he is usually not welcome in many places. He is seen as someone who has been born to make people uncomfortable.

The problem is that some people don’t want things written about them even if it is promotional and favourable. When it entails publishing their pictures alongside the story, they are doubly scared.

“Please, don’t use my picture. People will think I’ve got money and come for loan,” someone told me.

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Anyhow, journalists are seen as intruders, undesirables, born with plenty of okro in the mouth; maybe some also in the nose. Some of my friends are no longer too close because they fear I’d give them full coverage in the Sikaman Palava column. Ha ha ha! What a funny world!

Well, people like my Uncle, Sir Kofi Jogolo, my former classmate and born-mathematician, Kwame Korkorti, and ex-football star cum human-salamander Kofi Kokotako don’t mind featuring in the hilarious inches of this column. Kofi Owuo alias Death By Poverty is one personality who has to be mentioned in this palaver.

These are people who are going to live long, primarily because they see the world as one big ball of fun. When Kwame Korkorti was told that his dear mother was dead at home, he smiled and asked the bearer of the message whether his mother had cooked the afternoon meal before claiming she was dead. Until her death, Korkorti ate his lunch at his mother’s end.

When my Uncle Kofi Jogolo was picked and lost 1,500 dollars and a good amount of Sikaman currency, he didn’t lament the loss. Instead he was amused. In fact, he was almost glad about it, because he grinned from ear to ear, stroked his delicate moustache and congratulated the thief, adding that “He is smarter than I am.” Yeah, Jogolo is the man who employs a Swedish barber to trim his moustache.

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And when Kofi Kokotako was unemployed and was nearly hit by an articulated truck, he called the driver a fool. “The idiot should have killed me,” he said to me. “Didn’t he know I was unemployed and suffering?”

Today, Kokotako is employed as a Reverend and is not doing badly at all. Thanks to the regular silver collection.

And what about Kofi Owuo, the celebrated poor man. His wife left him not because he was poor, but because he swore in front of her that he would never prosper.

The following dawn the wife packed bag and baggage and went back to her parents and told them all about her husband’s alliance with poverty. Her parents were bewildered and called the alliance unholy. They had no option than to send back Owuo’s drinks to end the marriage.

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Kofi Owuo alias Death By Poverty did not contest the issue. He was more engrossed thinking about how to become poorer than to contest what he called a frivolous matter. The wife could go to hell, he said. These are people longevity smiles upon. Nothing worries them.

Getting back to talking about journalists. I’d say that anywhere there is journalism, the issue of press freedom is not too far away. Is the press free? That’s one question foreigners want answer to when they are on visit.

Well, journalists celebrate a yearly WORLD PRESS FREEDOM DAY to drum home the idea of press freedom as a very important thing in the practice of journalism.

This year’s was celebrated almost a fortnight ago but people didn’t see much of us because we are normally not good celebrants. We should have mounted a float to roam the entire capital, dancing asaboni to brass band music just like PTC did recently.

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Although journalists are known to be very good dancers because they walk very much, on that day, they were all busy writing. It was the Minister of Information, Mr Kofi Totobi Quakyi who saved the day by addressing a forum organised to mark the day.

He is a man I’ve always admired since his radical university days. He spoke much on press freedom, cautioning the press not to abuse the freedom granted by the Fourth Republican constitution, but to use it for the progress of society.

Well, press freedom has been defined by many journalists as the freedom to ‘write nonsense’. This definition is not quite accurate. I asked one staff reporter to define press freedom. It took him fifteen minutes to put up something.

“Press freedom is the freedom that is enjoyed by the press that enables journalists to publish or broadcast any kind of material so long as it is absolutely true, is not libelous and slanderous, and is not against the national interest.”

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I gave him eight out of 10, a straight A. I guess every journalist is old enough to know that certain things he or she writes is for or against the national interest. We certainly must guard against writing against the national interest; that is very important.

There is also the question of criticising government. The government can be criticized, so long as the criticisms are genuine and the President and his ministers are not insulted and called names. Let us criticize, but let us do it decently so that the journalistic profession can be revered, and its nobility acknowledged. We are not war mongers, are we?

One area in which journalists are not spoken well of is the complaint that they misquote people. Journalists sometimes misquote people, but in four out of five complaints it turns out that nobody is misquoted after all.

When we interview people they say things unreservedly and we publish unreservedly. When the publication is out and their friends or superiors read it and accuse them of having said too much to the press, then they start claiming they were misquoted.

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We have encountered these ‘misquotation palaver’ every now and then and reporters are usually accused of this transgression. However, when they bring out their note-books or recorders, it is realised that they wrote nothing out of the way. “Book no lie”.

My advice to people who deal with the press is that if they do not want anything written, they shouldn’t say it. What they want to say is OFF-RECORD, then of course, there is no reason to say it. When you say it, you’re taking a risk. In that instance, you can’t also claim to have been misquoted or words put into your mouth.

And it isn’t every journalist who would be circumspect in matters that are supposed to be off-record, because journalists often want to be as sensational as possible to make their stories saleable. So say just what you want to see published and you won’t later regret it and claim you were misquoted.

Well, I’m not holding brief for journalists, because a few of us are notorious for colouring our reports sometimes sand-papering the words so much that they look very bright in front of readers.

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As I once said, when the police tells one such notorious pressman that the thief stole a brown goat, the pressman would want to know whether the goat was bearded. Of course, the police would say ‘Yes’.

However, in the press report, it appears, “A gang of notorious goat-thieves were apprehended in the early hours of yesterday. In the car in which they were riding was a brownish-red goat having a long beard. Upon further examination, it was realised that the goat also had a greyish moustache.”

When the story appears, the police are naturally disturbed. A single thief turns out to be a gang of thieves. The goat also becomes a chameleon and changes colour to brownish-red. And a moustacheless goat overnight wears a greyish moustache whether you like it or not. Luckily the journalist does not add that the moustache was trimmed by a Swedish barber.

Yes, we have a few of such mischief-creating, chronically notorious journalists. But they are one in a hundred. In any case, we make the world. And we shall always do our best to make it a happy place to live in.

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 This article was first publish on Saturday, May, 20, 1995

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Features

Mindset change: The Greater Works factor- Part 2

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When I hear of people who are of the opinion that they cannot make it in life unless they travel abroad, l become sad.  

Whenever I see on TV, news of people, that is migrants who have drowned in the Mediterranean Sea, while attempting to cross to Europe, l become filled with sadness and then anger. 

The underlying factor is desperation born out of loss of hope, in life.  When an individual tends to believe that his only hope of making it in life is to travel abroad, the risk of dying at sea, does not deter him or her. 

The role of some pastors on shaping the mindset of people, especially the youth, leaves much to be desired.  You hear them declaring on various media platforms how they can pray for you to get a visa to travel abroad, instead of encouraging them to find something to do to improve their lives as the Bible teaches that God will bless the work of their hands.

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The GREATER WORKS CONFERENCE is geared towards renewing the minds of people with a specific focus on people of African descent to rid themselves of the negative perception of lack of capacity to excel in life.  

Pastor Mensa Otabil believes that every human being, no matter the skin colour, was created in the exact image of God and therefore has the capacity to do exploits. 

The whiteman was not created in the image of God while the Blackman was created in the image of something other than God.  The Black person therefore can achieve whatever the whiteman can achieve.

 The development in terms of industrialisation that is lacking which has generated unemployment for the youth, is due to lack of effective leadership.  The lack of moral integrity in society, is what is causing the lack of job opportunities, which is as a result of corrupt acts which drive away private investment.

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A culture of inferiority complex exists which needs to be dealt with, so the African can develop the self worth necessary for personal development which can then result in capacity deployment to avhieve personal goals. 

Success in life begins with the individual’s recognition that he or she is capable of achieving the dreams he or she has conceived in his or her mind.  The Bible teaches that the fear of the Lord is the beginning of wisdom, and the knowledge of the holy is understanding according to Proverbs 9:10. 

Christianity was the driving force behind the development of Europe because no society can sustain development without high moral values.  GREATER WORKS therefore is a deliberate project to shape the minds of people, especially the youth, who will become the leaders of our future, to prioritise morality in their daily lives.

This is the only way to see a massive transformation in every aspect of our lives as Ghanaians and Africans in Ghana and the rest of the continent.

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Since the inception of the GREATOR WORKS CONFERENCE, it has made a lot of impact in the lives of many people from the youth up to the senior citizens level.  I recall the testimony of a church member who was motivated and pursued higher education and became one of the youngest Chartered Accountants in this country.  Year after year, the impact of the conference has been enormous and lives in Ghana and across the continent, are being transformed. 

Black people have started regaining their self confidence and the youth have started getting into areas that previously were considered out of bounds.  At a personal level, certain ideas that some years ago, l would have not dreamt about suddenly has become realistic dreams. 

The Christian lifestyle has impacted on my children and those close to me.  Mindset change starts with one individual, then another and then gradually it spreads like a viral infection until a critical mass is attained and them a massive impact.  There is hope for the future.

By Laud Kissi-Mensah

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