The Trades Union Congress (TUC) has portrayed as 'shocking error' and 'miserable' choice, the Akufo-Addo government's transition to look for help from the International Monetary Fund (IMF) to resuscitate Ghana's sickly economy.
In an emphatic explanation, the trade guild said while it values the difficulties confronting the economy, it doesn't really accept that that going under an IMF program is the best arrangement.
"It is presently impossible to miss that the economy of Ghana is in a frantic circumstance. Yet, we are of the firm view that giving over the administration of the economy to the IMF isn't the answer for our concerns," the TUC said.
It was of the view that an IMF program will get tight monetary circumstances, for example, a stop on open area work similar to the case for Ghana's sixteenth program with the asset, taking note of that in spite of the numerous bailouts, the Ghanaian economy keeps on confronting difficulties.
"The difficulties every one of these IMF programs welcomed on Ghanaians were colossal and unnecessary. What we received in kind was an economy still excessively subject to creation and commodity of unrefined substances and import of made items. The majority of our useful areas, for example, mining, oil and broadcast communications are as yet being constrained by unfamiliar organizations."
The Ministry of Information on Friday, July 1, 2022, reported that President Akufo-Addo had given endorsement for Ghana to start commitment with the IMF for a bailout.
The TUC said it was despondent that the public authority "singularly" consented to look for an IMF bailout.
It helped government to remember its commitment for a four and seven percent pay increment for 2021 and 2022 on condition that administration won't proclaim redundancies in the public help and that administration will keep on utilizing youngsters into the public help, adding that any condition from an IMF program that will force unnecessary difficulty on them will be forestalled.
"We would like government to take note of that the functioning individuals of Ghana will take the necessary steps to forestall the burden of unnecessary difficulties on them and the great individuals of Ghana," it said.
Peruse the full assertion underneath:
Beginning OF FORMAL ENGAGEMENTS WITH THE INTERNATIONAL MONETARY FUND (IMF)
On July 1, 2022, the Minister for Information made an authority announcement to illuminate Ghanaians that President Akufo - Addo has guided the Minister for Finance to begin formal commitment with the International Monetary Fund (IMF), "welcoming the Fund to help a financial program set up by the Government of Ghana". The assertion further underlined Cabinet's underwriting of the choice by the President to look for IMF support.
The Trades Union Congress (TUC) thinks about this choice by government a terrible error and a miserable one for Ghana. This will be the eighteenth time our country's economy will be given over to the IMF to make due. It is exceptionally miserable in light of the fact that it is an obvious sign that we can't deal with our own undertakings.
We completely recognize the effect of worldwide improvements on Ghana's economy. Simultaneously, the present status of the economy proposes that the hearty economy government professed to have worked before the pandemic was not sufficiently strong. It probably been based on a "groundwork of straw" yet Ghanaians were informed that our economy was solid and stable.
It is currently impossible to miss that the economy of Ghana is in a frantic circumstance. Yet, we are of the firm view that giving over the administration of the economy to the IMF isn't the answer for our concerns. In the Fourth Republic alone, we have carried out five IMF programs. These IMF programs have just forced pointless difficulties on Ghanaians with hardly anything to show for them. The arrangements proffered by the Fund are not suitable for our economy. They scratch the edges of the issue without handling the essential issues confronting the economy.
1 The negative social ramifications of the strict way in which IMF-supported programs were carried out during the primary change time frame are still exceptionally new in our recollections. A huge number of public area laborers lost their positions, pointlessly. For instance, the last IMF-Extended Credit Facility program (2015-2018) was molded on government freezing work in the public help, among different conditionalities. This intended that while CHIP Compounds were without talented clinical staff, prepared medical caretakers were picketing at the Ministry of Health and Ministry of Employment and Labor Relations for occupations. That IMF program created a relationship of jobless alumni without precedent for the historical backdrop of our country. The program likewise prompted a precarious decrease in genuine wages. The difficulties every one of these IMF programs welcomed on Ghanaians were tremendous and unnecessary. What we received in kind was an economy still excessively reliant upon creation and commodity of unrefined substances and import of fabricated items. A large portion of our useful areas, for example, mining, petrol and media communications are as yet being constrained by unfamiliar organizations.
Our set of experiences of commitment with the IMF gives more than adequate proof that IMF-supported projects and approaches can't change our monetary conditions. Assuming we gain from history, we would realize that nations that have succeeded financially, for example, South Korea, Singapore and China didn't follow the neo-liberal arrangements in light of the Washington Consensus which give the premise to all IMF-supported program.
The main explanation an administration would need to look for IMF bailout is to search for momentary convenient solution to our perpetual financial difficulties. Ghana has done this multiple times and government has quite recently reported the initiation of commitment for the eighteenth IMF-supported program. One thing is extremely sure - the eighteenth IMF program won't tackle our concerns. Hence, we ought to be ready for the nineteenth, 20th and more projects in the following couple of years, despite the fact that it is clear to the point that IMF programs give basically no consideration to the expulsion of primary limitations to supportable development and advancement.
What we want presently are measures that tackle the underlying limitations to monetary and social turn of events. Those actions should incorporate strategies and projects pointed toward finishing the control of unfamiliar organizations in the most useful areas of the economy, limit our reliance on normal assets and construct a powerful assembling base. An economy which is reliant upon few regular assets will keep on confronting monetary difficulties.
We accept emphatically that we can accomplish reasonable financial development and improvement in the event that we construct agreement among the critical partners through a certified social organization.
In 2019, the Government of Ghana, addressed by the Ministry of Finance and Ministry of Employment and Labor Relations and Organized Labor addressed by the Trades Union Congress (TUC) and confidential area managers addressed by
2 the Ghana Employers' Association (GEA), on the whole alluded to as Social Partners, marked a Memorandum of Understanding (MoU) with the accompanying goals:
a. Give a component to building a feeling of union, trust, self-administration, and take part in candid and open conversations with common penances and commitments from all partners to support the course of Ghana's turn of events;
b. Give a stage to arriving at public agreement on change and improvement issues;
c. Give a post-IMF Extended Credit Facility neighborhood improvement organization plan among Social Partners to guarantee the irreversibility of macroeconomic increases;
d. Attempt examination on key advancement issues and exhort government on same;
e. Purposeful and make inputs on public improvement strategy talk, including the National Budget;
f. Act as an interior instrument to encourage responsibility; and
g. Instill a culture of social participation between laborers, businesses and government at all levels of the Ghanaian culture.
How we might interpret the one-sided choice by Government to begin commitment with IMF, with no discussion with the social accomplices, adds up to a statement of the finish of the social organization started in 2019 with the previously mentioned targets.
We might want to remind government that, as a component of the dealings for the 2021 and 2022 base compensation, we consented to the four and seven percent pay increments separately on condition that administration won't proclaim redundancies in the public help and that administration will keep on utilizing youngsters into the public assistance.
We would like government to take note of that the functioning individuals of Ghana will take the necessary steps to forestall the burden of unnecessary difficulties on them and the great individuals of Ghana.
[SIGNED] DR. YAW BAAH SECRETARY GENERAL ACCRA, 3RD JULY 2022
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