SAVE OUR LOCAL INDUSTRIES (JUNE 19, 2009)

THE government of the First Republic introduced the import substitution industrialisation policy in order to end our reliance on the industrialised world.
For this reason, our first President, Dr Kwame Nkrumah, established industries across the length and breadth of the country to create jobs and provide for the needs of the people.
Critics of that policy held the view that instead of establishing industrial plants throughout the country, the government should have expanded the raw material base to feed the factories.
From the beginning, the factories performed at optimum capacity producing for the local market and for export. During that period industrial zones were developed in the three major cities of Accra, Kumasi and Takoradi.
It is unfortunate that the concerns of the critics of the industrialisation policy of the First Republic were ignored. But the reality soon caught up with us when we could not sustain the capacities of the industries. The economic difficulties of the late 1960s compelled managers of most of the companies to fold up because they could not import raw materials in the absence of a local raw material base.
Also, the era of globalisation meant stiff competition from the outside world. Perhaps the last straw that broke the camel’s back was the unbridled liberalisation of the 1980s when our exchange regime was relaxed and traders were encouraged to import all manner of goods.
Our inability to protect our local industries, including the rice and poultry sectors, has brought us to a situation where virtually all our local industries have collapsed.
It is a sad commentary that after 52 years of independence our country has become a dumping ground, making it difficult for local industries to compete.
The DAILY GRAPHIC is, therefore, not surprised that today 21 textile factories in the country have collapsed due to the influx of imported textiles.
The cheap textile imports appear to have plunged the local industries into a more difficult situation which has witnessed a drastic drop in the production of textiles from 150 million metres to 25 million metres now and a further 60 per cent drop in textile sector employment.
It is against this background that we commend the initiative being co-ordinated by Pot Potpourri Productions to save the local textile industry from total collapse.
This campaign must not be limited to the local textile industry but must be extended to all sectors in order to save jobs and incomes.
We know that with a population of 22 million, our market is small, making the cost of production high. But as a nation we can make a pledge to use only what we produce locally to help grow our economy.
As we revive the campaign for locally produced items, we should revisit earlier initiatives by the Association of Ghana Industries (AGI) for the patronage of made-in-Ghana goods.
That initiative and others such as the Friday Wear Campaign did not make any meaningful impact because there was no commitment from our leaders.
We are not going to succeed in any endeavour if we are afraid to even take the first step. We do not want to recommend the policy of autarky but in this globalised world it will be economically prudent to encourage our people to develop a taste for locally produced goods and services.
The whole world is leaning towards integration, which means that we must open our markets to the outside world. But we need to develop policies that will safeguard the interest of the businessmen and women who put their money into supporting the local economy.
However, there is the need for a clear-cut policy direction to save our industries, coupled with a pledge by consumers to patronise made-in-Ghana goods.