Blame ‘Kuffour Dollar’ For Economic Hardship

26 Jan 2011 217 blogs, opinion
The common language on the lip of Ghanaians across the country today is the escalating prices of goods and services. Ghanaians are having sleepless night trying to figure out what exactly may be the cause. While, some are blaming the government for poor economic policies, others are blaming some greedy traders who want to either make abnormal profit overnight or want to discredit the government. Of course, the economic indicators which play vital roll in determination of prices do not warrant any increase in prices. The foreign exchange market is stable, inflation is at its best and the PPI is falling, yet the prices are increasing, WHY? Hence the need for this write-up.The redenomination which shred away four zero’s did not take into consideration the prices which falls within three, two and one zero and the smaller denominations. The net effect is all those prices which fall within these ranges must be pushed up to the nearest available denomination in other to facilitate selling and payment balance.Countries like Argentina, Korea among others which redenominated their currencies experienced similar problems which we could have learnt from, yet Ghana neglected those setbacks and here we are today. Opportunistic pricing has become the price we paying for a negligence work done. Casting my mind back prior to the redenomination, pure water was sold at 3000 cedis after the denomination it moved to 5p which is equivalent to 5000 old cedis. Tro-tro fare which affects large number of low and middle income earners were not left out. Tro-tro fare from Lagos town to Accra was 3,200 old cedis after the redenomination it moved 35 pesewa new cedis. Pen, cigarettes, tort of local gin popularly known as "Akpeteshie", pepper, toilet fees among others which are patronized by the poor who form the majority of the population became the victims. As we speak the production cost of pure water has gone up between 20 -30%, ironically, the producers cannot pass on this increment to the consumers, and any attempt to push it to the latter will see it going up to 100%. And it’s no surprise that the pure water sellers have unsuccessfully attempted to sell at 10p Ghana cedis on two occasions. I am not in anyway suggesting that the redenomination was not good, but critical thinking and thorough consultation would have spared us of this hardship. Strangely, the government and for that matter the reckless party who negligently implemented this policy is today raising the red flag on the consequences of the poorly executed policies. Blaming the present government, knowing very well that they are the cause of the out-of-control rising general prices of goods and services. In conclusion, I will call on the government to correct these anomalies since the power of this country has been vested in their care. They have the power to turn a man into a woman so as they can change the trend of the economic hardship.Once again ‘I say Uncle Atta ye bre’Long live Mr. President, Long live Ghana

Source: Atitsogbui, Paul Parker