LOW INFLATION,JOBLESS,GHC 16000 TOO SMALL,MPs WANT MORE…

There is only one place in the world this caption would hold. GH. When the President met the press makers early this month, he cast a positive and confident picture in the minds of all, boasting of 2011 been an Action Year. Well, it seems to be coming to fruition!

First, the MPs, who were appoited by their respective eletorates after they presented themselves for those positions have asked for a pay rise. It seems, they are trying to be the first in line for any dashes by the current administration. With inflation at an all-time low of 8.58%, but a high possibility of it responding to the 30% petroleum price hike, (http://www.ghananewslink.com/index.php?id=11128) the MPs are proving to be the masters of Forward Trading. They want to secure and maintain their liquidity by negotiating a pay rise now.

Or perhaps, the MPs are looking to accumulate enough funds to contest for the upcoming parliamentary and presidential elections in 2012. With the NPP setting the price of application forms for any aspiring MP willing to contest on the ticket of the party at GHC 16000, it looks like everybody would want to save for that fateful rainy day. Afterall, majority, if not all of them have already spent big and huge sums of money supporting their favourites at the recently held assembly election, which by constitutional conditions, remais technically non-partisan. Better still, some have already started lobbying for votes and public support from the successfull assembly men and women. Given that elections are just around the corner, and the president’s promise of more action-which means more money to spend- it’s rather odd and disturbing that our law makers are asking for more money. Not to even mention what is going on the streets of Accra and Kumasi….

AFAG-allegedly an invention of the NPP- and its supposed sister in  Kumasi have launched demonstrations in two of Ghana’s biggest cities, to drive home the challenges of the majority of us. No jobs, prices have gone up, and yet certain people want better pay.  And still, our own Kofi Jumo says that paying GHC 1600 to contest for leadership is not enough. All these, only in Ghana

POPULARITY STUNT?

Just take a look at Monday 4th October edition of the Daily Graphic and all you see is a certain Asomdwee Hene(Harbinger of Peace) splashed on the front page. The president is pictured waving at a crowd at Kotoka International Airport carrying numerous welcoming placards reading; ‘Welcome Oman Bapa’, which translates as welcome good son; ‘this is not salon money’, referring to the previous administration’s deal with an institution whose address led to a salon. (http://www.graphic.com.gh/news/page.php?news=9556&title=Rousing%20Welcome%20For%20Prez) All these coming at the back of recent unpopular remarks about the administration’s slow paced strategy and over elaboration of good effects of curbing a certain inflation, when i was finding it difficult like my colleague graduates, in securing a job and even an interview.

All said, the trip did bring good news for our strive towards bridging the north-south gap. There is the prospect of a a new highway along the Eastern corridor to link Hohoe in the Volta Region and Kulungungu in the Upper East of the country. There is also the $3billion investment in the up and coming oil sector. Then again we might mention the other commitments in Health and Water infrastructure. To say the least, the trip to the Asian countries did bring alot of things to be happy about, after Japan closed the door on all loan opportunities after we went HIPC, but also wiped out a whopping  $1billion in debt.

But it remains to be seen if these commitments will bring with them the needed jobs and incomes we all expect, and whether the group at the airport were just organised by a certain NDC PROPAGANDA Secretary. I hope it is not just a move to gain popularity from the fold.

MILLS-A SAVVY ECONOMIST?

Inflation is falling, and the government wants us to believe it is good for the economy. While disinflation is not necessarily bad, from a consumer’s point of view, it must not be used as a measure of a well-run economy either. There have already been issues about whether or not GDP is a fine yardstick for that purpose, but what is certain is that, for people to be happy and comfortable, there have to be the ability to spend. Purchasing power is what drives the economy, whether from the government, firms or households. Take one close look at the American economy, and you will realise how mush importance is placed on househld purchases. But the truth is that, people can not buy when they have no money, and they will never have money unless they have jobs.

Instead of pushing on with this inflation targeting, which has not silved any of our dire needs such as access to quality health and education, water, shelter and food, we should rather be looking to solve our problms directly. Every new administration finds ways and means of reducing inflation in ther first 20 or so months in office. But the truth is that, afterwards, things change and the reality befals them.

The Mills administration has already instituted measure to raise public sector wages, the biggest employer in the country. Though this has not yet been felt by the workers, what it will do is that, come the end of 2010, we are going to see rising demand for goods and services when every one has felt it in their pay package. This would definitely cause a hike in the Consumer Price Index. That is what the Economist-run administration is looking to foresatall. To further dampen the effet of this expansionary step, the former tax expert instituted rises in toll booths and approved utility tarrif increases, so that i now pay double what i used to. It has literally cut down spending.

2011 IS INFLATION YEAR!!

Graduates are now running after positions in the National Youth Employment programmes, and the census enumeration officers are all unemployed youth. All these, coupled with the pay rises, will definitely raise inflation figures by the end of the year. The government is actually dampening the effect of inflation in 2011 by curbing spending now. Imagine what the value would be if spending continued at the Jan 09 level of 19.86%.

DEVELOPMENT or EMPLOYMENT AGENDA!!!

Just as i predicted; Something was behind the drive towards single digit inflation and disinflation, while people wallowed in unemployment and unable to feed their families. In the 24th September edition of the Daily Graphic, my suspisions were confirmed, when the experienced Finance Minister of the Republic, Kwabena Dufuor mentioned the kick-starting of a Development Agenda beginning in 2011 and ending in 2013. This new path replaces the GPRS11 that was started by the NPP, initially GPRS1, as part of the HIPC initiative. Again, we can not plot our own development strategies without recourse to ending policies started by previous administrations.

This strategy, interestingly comes at the expiry of public-sector employment freeze, a conditionality for the approval of a 300million dollar loan from the IDA (http://www.ghanatouristvillas.com/news2/228491/1/freeze-on-public-sector-employment-unjustifiable.html), nearly to years ago. What we should expect is that, unemployment will fall, but people will resort to dubious ways of getting jobs, and corruption would rise as more graduates like myself seek out the few jobs that would be available early next year. This, coupled with the kick-starting of the census process, and an amount of not less than GHS 310 million, in the hands of enumerators, as well as  onset of the dry season would push prices up again. We can only hope that, when the CPI starts breaking unwanted records, some recent graduates like myself have pay checks to pay for food and higher utility tariffs.

For the sake of this country and political stability, i hope it is an Employment Agenda we will pursue!!

Give Me My One Ghana!!

The most ridiculous statement, perhaps borne out of sheer incompetence and lack of competition, would be for a bank to seek charges from one cashing a cheque. Yet, i heard a not too far comment from the above, from a staff of NIB Tamale branch.

As a service personnel, it was pleasing to hear the scheme’s directors had decided to pay us through modern money management methods. However, i was shocked to realise that, despite been libale to paying GHC 15 to the scheme in 2 monthly installments- a fee i believe is totally unjustified- i still had to pay GHC 1 every month to the shareholders of the National Investment Bank, for service rendered to the National Service Secretariat.

Receiving my allowance through the bank was the result of negotiations between the secretariat and the NIB – I wonder if any viable review process was initiated- without the knowledge of my fellow service and voluntary personnel. Any cost incurred should therefore be placed at the doorstep of the NSS.

The characteristic of the card with which we retrieve our funds is not far from a cheque. Are they saying supposing MR Kuafugbe issues a cheque to a service personnel, the personnel should pay a fee for the paperwork and convenience afforded Mr Kuafubge by the bank’s cheque? Certainly not! If anything at all, the issuer of the cheque is the one to pay any charges, otherwise we are running a very poor banking sector in Ghana.

The grounds on which the NSS employed the services of the bank should be reviewed and revised. What is the essence of charging as high an amount as GHC 15 to the NSS for an online registation tha only gives me my appointment letter, and i still go through a daunting manual registration? The NSS gives me the impression it is running an HR firm for profit.

I beleive i speak for both service and voluntary personnels when i say: GIVE ME MY ONE GHANA! Make that 2 Ghana, for i have paid for two months.

The 3-Month Compensation Package

Cracked lips, Cracked heels and dry skin.For three odd months, they persevere through the cold and dusty winds. Each morning, they have the extra burden of setting fire to enable them heat their bath water. Those who do not gather firewood rely on water heaters, which add to their cost of living through higher light bills.

The time has come for you to tell of the human and capital resources lost to the colder morning weather; The number of days you spend away from your posts, having been struck by cold-related sicknesses; the extra hours you spend under your sheets , escaping the colder winds and your subsequent lateness to your posts.

The month of harmattan certainly leaves its toll on us; The extra funds we employ to purchase thicker socks and woolen clothen to keep the cold a bay; The extra money we spend on body moisturizers and ‘mouth oils’ to protect our God-given delicate skins and lips; The extra resources we toil for in order to buy soapy and soapless detergents to clean our formal and casual wears affected by the dusty winds.

For me, the time has come to break the silence. With the extra time  i spend collecting my scanty allowance from the district cordinator’s office usually in the 3rd week of the following month, it’s high time i was shown further appreciation by my government. For accepting to be posted to one of the northern regions to promote this nation’s development, while my colleagues in the south sought for changes, i deserve a 3-month compensation package: The Harmattan Allowance.

Adiyiah Adds a Brace

At the on going U-20 world cup in Egypt, Ghana progressed to the Semi-Finals, thanks a disciplined display against a very talented Korean side. The Black Satelites were 2-0 up within 35 minutes, through strikes from Adiyiah and Osei. The Koreans then pulled one back on 38 minutes, and continued to dominate. Despite that, it was the Satelites who looked dangerous on the counter-attacks. After spurning chances, the Ghanaians made it 3-1 through Adiyiah’s 2nd of the game and sixth of the tournament with a wonderful solo effort. The Koreans pulled another on back but was too late.

The Black Satelites await the winner of Italy-Hungary game, to battle it out for a place in the finals.

AYEEKO GHANA.

Retire in Peace

President John Evans Atta Mills today launched the new Three-Tier Pension Scheme, with a call on the National Pensions Regulatory Authority to ensure that the new pension scheme is well managed for the benefit of the Ghanaian worker.

He said the scheme, which could increase national savings and ensure availability of long term funds for economic development and promotion of growth and development of the capital, mortgage and insurance markets, should be well managed due to recent experiences from the global and financial crises.

President Mills recalled that successive governments have over the years been mandated with genuine and legitimate concerns, especially from the public sector workers to improve on the inadequate pensions paid to them through the Social Security and National Insurance Trust (SSNIT) Pension.

These concerns, the President noted, therefore stimulated the concern and awareness to reengineer the nation’s pension systems. The launching of this new package, he noted, will respond to the concerns and needs of pensioners, stressing that “the enactment of the new pension law, Act 766, answers a number of questions and fills the void in the nation’s pension administration”.

The pension package, among other things takes care of people in the informal sector, who constitute almost 85% of the workforce, enables the government to satisfy a constitutional requirement, under Article 37/6 of the 1992 Constitution, which enjoined government or the state to provide a comprehensive contributory scheme that should be maintained and guarantee “economic security” for self-employed persons and other citizens, he said.

“We have come here to see a culmination of a process. This process did not come by chance. It has taken months and years of hard work and consensus building”, he said, and used the occasion to congratulate all those who contributed to the realisation of the scheme. He reminded the National Pension Regulatory Authority of the responsibilities that has been trusted to them by the people of Ghana, especially with regard to the informal sector.

The President also urged the pension fund managers to organise a comprehensive education and sensitisation programme to encourage individuals, associations and groups to participate in the scheme. “I am very happy that the scheme makes it possible for pensioners or workers to use their future lump-sum benefits as collateral to secure their own mortgages, a way to ease the accommodation problems in the country” he said.

The President, who associated himself with pensioners throughout his address, also noted that investment funds will be released if the scheme is properly managed, adding “you should make sure that whilst you ensure that funds are made available, you do not over stretch the system”.

Mr. Richard Kwame Asante, Board Chairman of the National Pensions Regulatory Authority, said the new Pensions Law (National Pensions Act, 2008-Act 766) caters for the establishment of a contributory three-tier pension scheme and a Pensions Regulatory Authority.

The three-tier scheme, according to Mr. Asante, comprises two mandatory schemes and a voluntary scheme. The first tier is a mandatory basic national social security scheme, which will incorporate an improved system of SSNIT benefits, while the second mandatory fully funded and privately managed occupational pension scheme, is designed primary to give contributors higher lump-sum benefits than SSNIT and the CAP 30.

The third voluntary provident pension scheme is targeted at the informal sector and provides additional benefits to workers in the sector who want to make voluntary contributions to enhance their pensions.

He appealed to government to provide the authority with adequate office accommodation, support the recruitment of staff with attractive remuneration to carry out their functions and provide the necessary logistics.

The Minister for Employment and social Welfare, Mr. Stephen Amoanor Kwao assured the scheme of his ministry’s support.

Source: ISD (Elorm Ametepe); www.myjoyonline.com