Now back to manifestos. First a flash back and then prepare for 2020. IMANI incollabration with Enfransmedia.com just wanted attainable promises. Here was what the Progressive People’s Party (PPP) promised under economy in 2016.
1. Under the Economy section, a total of 19 MAJOR promises were made by the PPP. Out of these, 16 were non quantifiable and 2 were quantifiable. However, the quantifiable ones lack detailed information on how they will be obtained.
2. For instance, they promise to make Ghana a higher-level middle-income country within 10 years, yet provide no concrete information on how the goal will be reached.
3. They promised to modernise the agriculture sector but do not explain how, nor define what they actually mean, and they promised to provide a market for farmers and fishermen, disregarding that such a market already exists; the world market and the local market.
4. The real question is what is impeding the farmers to be competitive enough to increase their shares of these markets? A promise of relying on state purchasing power does not solve the main problem.
5. In fact, it can have a contrary effect: if low productive firms or farmers get state subsidies to prevent them from bankruptcy or collapse, more productive firms will face an artificial competition that might force them to leave the market.
6. As the share of unproductive firms increase, the total sector productivity decreases and the burden for the government might escalate.
7. It can also have an adverse effect on firm incentives; if a firm knows that the state will prevent them from bankruptcy, there are fewer incentives to improve and outperform other firms.
8. When PPP stated that “Economic policy will revolve around agriculture and the use of state purchasing power.” it must clarify what is meant by state purchasing power.
9. Do they promise to purchase any excess supply produced by Ghanaian firms and farmers? Will they give subsidies to certain sectors, and if so, to which and in what form?
10. When they promise to “support Ghanaian firms”, do they plan to change any import regulations? Another vague promise on how to build up the economy is their promise to “ensure low interest loans”. How do they plan on reducing the interest rates facing firms?
11. In 2016, excessive government borrowing from BoG put pressure on interest rates; will PPP set a stricter ceiling for such borrowing?
12. Another issue is the borrowing risk in an unstable macroeconomic environment; the risk of borrowing and lending is exacerbated. This is further fueled by unstable energy supply, making projects less profitable.
13. What does PPP plan to do about this? For PPP’s claim to ensure low interest loans to be taken seriously, these issues must be clearly addressed.
14. Other unclear promises include; “Private companies such as Ghana Nuts Company will be supported (…)”, “Poultry and Wood processing industry will be given technical and financial support (…)”, and a promise to “Create a modernized agriculture and provide a market to sustain farmers and fishermen”.
15. How will the private companies be supported? Will there be tax incentives? Will there be subsidies? Will import duties on similar products be imposed? Will import duties on input material be decreased? There are many ways to “support private companies”, and each has an effect on the economy that should be accounted for.
Next parties ..NDC, NPP, PNC, NDP…
Credit To : IMANI