GETTING OUT OF CREDIT CRUNCH (MONDAY, MARCH 23, 2009)

TWO of Ghana’s major development partners last week pledged to fulfil their promises to support the country to attain its development goals.
The Chinese Ambassador to Ghana, Mr Yu Wenzhe, and Mr Hans Christian Winkler, the Deputy Head of Mission of the Embassy of the Federal Republic of Germany in Accra, said in separate discussions with journalists during visits to the Graphic Communication Group Limited that in spite of the credit crunch, their countries would not cut aid to Ghana and that if there must be a review, it would go up.
This piece of information must gladden the hearts of many who are worried about the effects of the global economic meltdown on our living standards.
Today, the uncertainty surrounding the global economic outlook is quite bleak, as countries in Europe, the Americas and Asia experience the shrinking of their economies.
It is in this context that the Daily Graphic welcomes news of further support from Ghana’s trading partners in the wake of slowing growth. The onus is now on us to use whatever support that will come our way to improve upon infrastructure and expand the economic base.
Quite heart-warming is that quite in contrast to the global economic decline, growth in sub-Saharan Africa is predicted to go up. But it is equally worrying that rising food prices will impact negatively on inflation.
The Daily Graphic believes that the time has come for the government to engage all sectors of society in fashioning out the necessary interventions to deal with the global economic challenges.
We are aware of ongoing discussions among the groups that form the National Tripartite Committee to determine the minimum wage, a forum at which the challenges facing the economy will be tabled by the government with the view to getting some suggestions from organised labour and employers.
The issues confronting the economy should not be left to the government alone to deal with because we are in the boat together and the success of government’s interventions will rub positively on all Ghanaians.
We commend the governments of China and Germany for their support for Ghana during these trying times.
But in view of the fact that aid inflows cannot be guaranteed because of the credit crunch, the Daily Graphic reminds the international community to focus more on expanding trading activities with developing countries, as that partnership appears more enduring than aid.
The days ahead will certainly be tough, particularly for all income earners, especially those who receive salaries and wages, because inflationary pressures will reduce our purchasing power.
There will be a lot of pressure on food items, especially major staples such as maize and rice, from now until the next harvest period. And during the period, the government’s austerity measures will be put to test.
Notwithstanding the challenges, we hope that with prudent fiscal planning and monetary policy instruments, the country can maintain stable prices for goods and services and that this can stimulate growth.
The Daily Graphic believes that the austerity measures can receive popular support only when our leaders demonstrate by word and deed that they are ready to share in the country’s economic burden.