Ghana's economy has received a major boost in the last few weeks with the approval of about $1.5 billion by the Bretton Woods institutions to support the country's reconstruction efforts.
We began the year on a bleak note with the disclosure that the economy had recorded a budget deficit of 15 per cent.
From the last quarter of 2008 through to the first half of 2009, the cedi experienced a free fall against all major currencies. The global economic crisis did not spare us the challenges that most countries are experiencing now, such as a freeze on credit, a cut in the workforce and a substantial drop in foreign remittances.
However, there appears to be a silver lining in the horizon. With the provision of substantial support by the International Monetary Fund (IMF) and the World Bank to prop up the economy, the initial worry at the beginning of the year that the donor community would withdraw support for our economy has been found to be non-existent, after all.
The assistance from the Bretton Woods institutions, therefore, is a good testimony of the confidence those institutions have in the economy, particularly the austerity measures outlined in the first budget of the Mills administration.
The government has contracted a $535 million loan, which has been endorsed by Parliament, from the International Development Association (IDA) of the World Bank at zero interest rate to support the budget, the transport sector and environmental projects.
Last week, the IMF approved $1 billion to support our balance of payments and improve our reserves at the Bank of Ghana.
These inflows are not intended to replace our own efforts at mobilising revenue to carry out development activities. Nonetheless, the release of the money will help, in large measure, to stabilise the cedi.
Although the Daily Graphic endorses the position that donor support cannot be a substitute for internal interventions, donor inflows can change the health of our economy if they are properly utilised.
In this inter-dependent world, where autarky may be counter productive, Ghana cannot be self-sufficient in all the things that the people need in order to make life comfortable for them.
The Daily Graphic thinks that it is about time all Ghanaians, with one accord, demonstrated that together we can begin to chart a new path towards economic transformation.
Instead of bemoaning our predicament, we should work hard to achieve the results outlined in this year's budget.
With the support for the Bank of Ghana to improve our reserves, we may have the wherewithal to stabilise the cedi against all major currencies.
The Daily Graphic believes that the support can also help the anti-inflation crusade, such that we may begin the journey towards a single-digit inflation pretty soon. For some time the rise in inflation has eroded the gains we have chalked up, a situation which has compelled public sector income workers to agitate for higher salaries.
Ultimately, however, we have to work to mobilise resources from within to change the direction of our economy. This calls for sacrifices from all sections of society, particularly our leaders who must demonstrate their readiness to live by example.
For this reason, the government must plug all loopholes in the system to prevent unscrupulous individuals from exploiting them to line their pockets with money intended for public good.
The pillage and rape of public funds must be made a risky venture so that public resources are channelled towards poverty reduction activities and projects.
The Daily Graphic commends the Finance Minister, Dr Kwabena Duffuor, and his team for their efforts at putting the economy on a sound footing.
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