Posted on: www.dailyguideghana.com
By William Yaw Owusu
Friday, July 03, 2015
The Trades Union Congress (TUC) has issued what looks like a ‘no
confidence vote’ on the President John Dramani Mahama-led National Democratic
Congress (NDC) government.
The General Council of the TUC at its 33rd Bi-annual meeting
held in Tema from 25th and 26th June 2015, issued a damning verdict on the
government’s performance after a Mid-Year
review of the economic and social situation in the country.
Stunted Economy
“Economic growth has slowed considerably
and is expected to be around 3.5 percent in 2015, the lowest recorded growth in
more than a decade,” its Secretary
General Kofi Asamoah said in a release on Republic Day.
“Inflation is rising faster than projected.
In fact, for most basic products, the situation in our markets shows far
steeper price increases than the headline inflation figures reveal.”
According to the labour union, the Bank of Ghana’s decision to raise
its policy rate meant to curb inflation increased the costs of borrowing for
domestic businesses rendered most of them uncompetitive even on the domestic
market.
“The current account deficit remains large and growing. The
national currency, the cedi, continues its downward slide against all major
currencies in the world. These have imposed excessive economic and social costs
on Ghanaians,” TUC said.
Ghanaians Suffering
They said “jobs are disappearing as domestic companies fold up
or reduce operations to stay afloat. Most of our graduates have been without
jobs long after completing their national service. With prices rising faster
than incomes, the cost of living has become unbearable for the working people.”
Failing Interventions
According to the TUC, social intervention programmes like Capitation
grants, School Feeding Programme, national youth employment programmes,
Livelihood Empowerment Against Poverty (LEAP) and even the National Health
Insurance Scheme (NHIS) intended to cushion vulnerable sections of the
population are failing.”
Senchi vs IMF
The TUC accused the government of ‘jettisoning’ the
Senchi Consensus after which it turned to the IMF for what it called ‘economic
salvation’, saying “in doing so, government recognised that it faces a
credibility crisis and that it needed the IMF to fix that crisis.”
“Foreign investors with short-term outlook would most likely be
spurred by IMF programming to invest in short- to medium-dated government
treasuries. But it is very unlikely for any investor to invest long-term in
domestic production merely because of a three-year IMF bailout programme.”
They said “yet, Ghana requires long-term investment to grow the
economy, to rebalance the current account, and to strengthen the cedi and, most
crucially, to create decent jobs.”
Borrowed Credibility
The statement said the TUC is holding the view that Ghana cannot
develop on what it called “borrowed credibility”.
“What will happen when the programme ends in 2017? How would the
current programme resolve the perennial fiscal irresponsibility that has become
the hallmark of governments in Ghana?” they queried.
“If past trends are anything to go by, then one would expect a
return to the status quo where fiscal imprudence ushers this country into
further fiscal austerity with or without the IMF-sponsored programmes.”
It called on the government to address “the governance and
systemic policy failures manifested in pervasive corruption and impunity at the
highest echelons of our society.”
IMF bailout
The TUC said that the IMF bailout programme will not change
Ghana’s economic situation adding “in the last 16 years, Ghana has negotiated
three different IMF extended credit facility programmes, similar to the current
programme, and over 40 technical assistance programmes. These programmes have
failed to address the vulnerabilities inherent in the Ghanaian economy.”
Real Wages
They served notice to the government that organized labour would
not allow a further decline in real wages saying “given the general economic
hardships prevailing in the country, the Council finds it unacceptable that
government would agree to reduce real wages despite the sacrifices public
sector workers are making, including accepting a cost-of-living allowance in
2013 instead pay increase.”
In particular, we will continue to resist unreasonable increases
in utility and fuel prices and other such policies and measures that undermine
our efforts to improve the living standards of the working people of Ghana and
their families. Working people and ordinary Ghanaians cannot continue to absorb
any further increases that lead to higher cost of living.
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