Ghana
The current economic hardship in Ghana is not a thing that can be hidden or swept under the carpet - it is obvious on paper - and in statistics and in reality, everyone, both political and apolitical, the rich and the poor, is feeling the shock of its effects.
Economic Hardship has been the discussion on the street, at religious gatherings, at the workplace, in the bedroom, on our long telephone calls - especially this first quarter - of this year 2022.
The impact being felt cannot be ignored. It's worsening day by day, and Government is finding it difficult to roll out interventions that are desperately needed to help both in the short term and long term.
The March 2022 summary of Economic and Financial Data by the Bank of Ghana (BoG) has revealed that Ghana's public debt stock rose to GHC 351.8 billion in December 2021 from GHC 344.5 billion in November 2021, about 80.1% of Gross Domestic Product (GDP). In addition to this statistical proof, prices of goods are increased almost every two or three days, cedi is depreciating against its major trade counterpart, the dollar - people are therefore anticipating for a good outcome from Government's crunch cabinet meeting over the economy, that ended on Sunday, March 20th, at the Peduase Lodge.
Salaries of public workers for the months of January and February delayed - thus it went beyond the payment days that had been published by the Controller and Accountant General Department of Ghana. Sources told that Government found it difficult to credit public workers their wages for those two months - it wasn't news then to the public when the Speaker of Parliament, Alban Bagbin hinted that - if drastic measures aren't put in place, Government wouldn't be able to pay salaries of public workers - for the next three months - by that statement, he was referring to the months of February, March and April.
This may be the reason why government is trying to bulldoze a way through to pass the electronic - levy bill (E-Levy) - which I refer to as the emergency tax - to help save the bad situation in the country. The contribution of the emergency - tax or the e - levy to running this crisis - stricken economy cannot be overlooked - it's a decisive response! Moreover, widening tax net is a gut in every performing economy, and I do support its introduction absolutely - if implemented well.
However, there are a number of possible solutions we as a nation can look at - in the short term and long term to save the nation from this crisis eternally.
Below are suggestions, that from my view, when considered, can skew the performance of the economy to a positive one - to help raise Ghana.
Review Free Senior High School policy.
There is so much pressure on the government - and Government ought to relieve the nation from some of the burden by cutting public expenditure. For obvious reasons, this topic is unpalatable for pro-government groups and sympathisers. This is because - reviewing Nana Akufo Addo's flagship Free SHS policy in any form would make the New Patriotic Party Government unpopular. Although I beg to differ, many school of thoughts consider the 'Free SHS campaign message' as the one which single handedly won 2016 presidential polls for Nana Akufo Addo.
Yeah, it may be true to some extent as I can support this mass act of kindness with Proverbs 29:14, a quote from the Holy Bible which reads "If a King defends the right of the poor, he will rule for a long time". For this reason, I wholeheartedly support Free SHS, but the bitter truth about the policy must be told.
What does the 'free' in the policy seek to address? I think free always intend to gift the needy or the incapable. Since the policy goes by the name 'Free SHS Policy' - and not 'Compulsory Free SHS Policy' - then it is apparent that the main objective of the 'free' is to help address the education needs of the needy and those who cannot afford, and we ought not deviate from that.
Why must Government burden the nation with the cost of catering for the wards of the set in the country endowed with money?
Government could cater for tuition and all other forms of fees ie clothes, books etc - with the exception of feeding and or boarding fees. By this plan, one wouldn't pay a pesewa when enrolled as day student - throughout to completion. Hence more Community or Day Senior High Schools would be introduced by building new ones and or converting some existing boarding schools to full day schools - to make SHS education accessible to all.
Simply, a person in need would have accessible and free education as a day student - and if one so wish to be enrolled at a boarding facility, he or she pays for the feeding fee and utility bill. By this mode, more and more people would prefer being enrolled, as a day student, at a nearby school - other than paying fees in a boarding school when they can't afford. This would really cut Government's expenditure on SHS by a huge margin - because feeding and or boarding fees account for chunk of the expenditure.
Government could also task the Computerized School Selection and Placement System, CSSPS, to give priority to candidates who choose SHS schools within their own catchment areas during placement, and also give mandatory day status to everyone who is given admission to a school within his or her catchment area. Because of the current nature of Free SHS, even students who originally would have enrolled as day students, because their houses are just a stone throw from their preferred schools, enrol at the boarding house - putting a huge cost on the Government. This flaw and leakage would be checked by the above mentioned measures.
In another mode, some selected first class senior high schools - in the likes of Opoku Ware School, Prempeh College, PRESEC - Legon, Wesley Girls - Cape Coast, St. Peters Senior High, Achimota School, Nfantsipem School, St. Louis Senior High etc could be used as 'source points' - for the government to raise funds. About 20% to 50% of the school's population could be admitted on fee - paying basis. Per calculation, let us say a semester fee of about GHC 2,000 for about 200 students for each school - for about 50 selected first class schools can generate GHC 20 million a semester, and GHC 40 million a year. The Government can then use this to assist tuition fees of the full day schools. A lot of people who have enrolled their wards at private basic schools - primary and JHS are paying more than this suggested amount. Why then not allow these parents, who can afford, to pay for their wards secondary education?
Special scholarships could also be given to few exceptional basic education graduates who get distinction and are admitted into first class schools - but cannot afford to pay boarding fees.
In both modes, we are causing the rich to do social responsibility - by caring for the poor - and intelligently cutting the amount Government spend on SHS education. It is obvious that there is some room for criticism especially with the second mode - but I guess in the end, since 'day schooling' would be free and accessible, the need of the needy would be addressed. Government's expenditure would be cut - yet the main objective of the Free SHS would still be achieved.
Free SHS is 'Godly'! - and ought not be abolished. We can easily overlook its bad effect on the nation because of its numerous advantages. Yet, it needs to be revised in order for it to be sustainable.
Address salary gap between public sector workers and Article 71 service holders.
It is an open secret that the industrial strike action of public university lecturers earlier this year - that spanned from 10th January to 28th February - was fueled by the huge gap between their salaries and that of Article 71 office holders.
The Prof. Yaa Baidu Ntiamoah Emoluments Committee indicated that as of 2016, ordinary public workers earned about six percent of the monthly average salary of Article 71 office holders. Salt was added to injury when salaries for public workers were increased by a meagre 4% as against 79% salary adjustment for Article 71 service holders in 2021 - further increasing the salary gap outrageously.
These lecturers had concerns though may not be legitimate but very logical. They feel Government has the capacity to pay them more - thus if they can pay exorbitant salaries to Article 71 service holders. More industrial action from other labour unions ie Medical Doctors, Nurses, Teachers etc may be pending unless something urgent is done to address this issue.
Being in government should not give one room to amass wealth - service ought to be the politician's priority - and hence an atmosphere should be created for only people who are willing to commit to serve the nation. At any point in time in the salary structure of the nation, the monthly salary of an ordinary public worker should not be anything less than 40% of the monthly average salary of Article 71 service holders. If the President, Vice President, legislature, Judiciary and Government appointees are able to push this through to be established, I think it would be worth it, and citizens on their part would be more than ready to carry their cross too - to help save the nation.
Restructure School Feeding Programme.
The disadvantages of an intervention like the School Feeding Programme ought not be discussed at all - because the main objective is honorable and right spirited. It has to be looked at well since it currently serves to satisfy big wigs and 'faithfuls' of the ruling party - than it ought help the poor. Caterers who are given contracts are living luxurious and expensive lifestyles. Aside the fact this policy isn't an even distribution of the national cake to the needy, because only some few selected basic schools are captured under the policy, food served to the few privilege ones is also substandard.
For instance, under the 'day students free meal programme' of the Free SHS Policy, I know of one day school - of about a population of 1,200. Out of this number, an average of about 200 students go for the lunch daily. However, intelligence I have gathered tells that the School report that about 700 students are served every day. How do we as a nation allow this leakage to sink the Government?
Government ought to therefore intensify audit and monitoring of this programme - to reduce leakages.
Government must act on honest audit findings in the public sector.
Dishonesty in public funds usage is causing the nation a huge loss and ought to be addressed.
A revelation by the 2020 Auditor General Report tells that a total amount of ยข12.85 billion irregularities, equivalent of $918.28 million, was committed in 2020 by public boards, corporations and other statutory institutions.
Audit in the public sector of Ghana has become like a yearly circus show - performed for pundits to discuss, and it just ends there. Due to politically motivated interests, most of the issues are not even dealt with - the state is not able to retrieve lost funds - and neither are people prosecuted.
In addition to the bad effect of public service misappropriation, it has a bad impact on the private sector, the driving force of a working economy. Corruption is a big problem to entrepreneurs, businesses, and investors planning to invest in the country - so it is one technical area that ought to be looked at - to help the economy.
Government, the Special Prosecutor and the Police must commit to act on findings in the Auditor General's yearly report to deter people from future indulgence of corrupt acts.
Review Ex Gratia.
Former President J E A Mills took significant steps to repackage Ex Gratia - but it could not materialise - and I think the time is now to get the right thing done.
Recently, I was happy to hear Kusi Boafo of the Public Sector Reforms in Ghana while speaking on Kumasi based Wontumi FM - suggesting that ex gratia ought to be paid once in the cummulate service span of the Article 71 service holder - thus one time ex gratia payment for an officer who serves for more than one administrative term.
The Speaker of Parliament, Alban Bagbin, in 2019, who was then presidential aspirant of the National Democratic Congress while speaking on one of his interviews said "as a president, I will do away with the whole idea of ex gratia because I don't think that it's serving the purpose for which it was established. It's a complete waste. It's a contract employment and the contract will identify your entitlement but not ex gratia". This means more to me, it's deep, because these words are coming from a person who has been paid ex gratia on seven different occasions - having served as Member of Parliament, from the beginning of the forth republic, from 1993 to 2021.
Ex gratia is too expensive for Ghana - and there is the need to review it - and be paid once in the cummulate service span of Article 71 service holders.
Major changes in the constitution of Ghana.
There is more room to improve the current constitution of Ghana - in order to make the Ghanaian democratic governance better. Structures must be put in place to address political party financing - the seemingly current practice being the main hindrance to the fight against corruption in Ghana, and even Africa at large.
Semi up to total exclusive separation of powers between the arms of government to help check one another to improve transparency.
Review the span of immunity of head of Government from prosecution, President's appointment power and many other important points will be discussed into detail in my next publication titled "Model constitution to improve democratic governance in Ghana".
Emergency Tax.
In order for us as a nation to raise our gross domestic product - to improve the economy - we ought to widen our tax net - and this is true for every developed and well performing countries. Tax is a major tool for development, and Ghana must be no different.
Although Ghanaians are taxed in many different ways, I think in this economic crisis, the electronic - levy commonly known as e - levy could be a very intelligent way to breathe emergency life into the dying economy especially in the short term. Therefore we all have to support it - to collectively build Ghana.
Ghanaian citizens would easily agree to be talked to about the e - levy and accept it once they come to the realisation that Government is also playing part to sacrifice. After considering all the points discussed above for the long term, Ghanaians would sure to gladly accept e - levy - however a considerable percentage of not more than a compulsory 0.5% of amount transferred electronically should be deducted.
I also suggest, room should be created for people to do voluntary donations to Government - when they are doing electronic transfer - or a special agency or office could be created for voluntary tax donations. Recently, when a major road in my area was asphalted, and I thought of the diverse contribution and benefits the road would add to lives in the area - I had a deeper understanding that - all districts in the nation need a good road like ours from Effiduasi to Ejisu in the Ashanti Region. Out of my own will, I thought if there was means to pay a form of special tithe to Government - to help develop the nation by building good roads, good hospitals, schools etc, I would. This is the kind of sacrifice we should all as citizens make to build a stronger nation for generation and the next.
Honesty and patriotism.
We were born here, and Ghana is our motherland! Even when we leave the shores of the country travelling around the nations of the world, we still have a legacy to build, a name to protect, and a nation to honour. Therefore we all need to work on our sense of honesty and patriotism.
We have to willingly endow ourselves with honesty, be truthful in our line of duties at the office, at home, everywhere to give joy to the soul of the nation.
A man's intelligence is defined by his honesty. Stop corruption! - help build Ghana!
In my view, when the above measures are considered, and collectively we all sacrifice to make Ghana work, our dear nation would be a place worth living.
This is the only place we can gladly call our home - in this world.
May God bless Ghana.