The Trades Union Congress (TUC) has defined as ‘tragic mistake’ and ‘unhappy’ choice, the Akufo-Addo authorities’s flow to are seeking assist from the International Monetary Fund (IMF) to restore Ghana’s unwell financial system.
In a strongly-worded assertion, the labour union stated whilst it appreciates the demanding situations going through the financial system, it does now no longer trust that going below an IMF programme is the exceptional solution.
“It is now very apparent that the financial system of Ghana is in a determined situation. But we're of the company view that delivering the control of the financial system to the IMF isn't always the answer to our problems,” the TUC stated.
It changed into of the view that an IMF programme will carry in tight monetary conditions, including a freeze on public region employment as changed into the case for Ghana’s sixteenth programme with the fund, noting that notwithstanding the various bailouts, the Ghanaian financial system keeps to stand demanding situations.
“The hardships a majority of these IMF programmes introduced on Ghanaians have been large and pointless. What we were given in go back changed into an financial system nonetheless overly depending on manufacturing and export of uncooked substances and import of synthetic products. Most of our efficient sectors including mining, petroleum and telecommunications are nonetheless being managed via way of means of overseas groups.”
The Ministry of Information on Friday, July 1, 2022, introduced that President Akufo-Addo had given acclaim for Ghana to start engagements with the IMF for a bailout.
The TUC stated it changed into sad that the authorities “unilaterally” agreed to are seeking an IMF bailout.
It reminded authorities of its promise for a 4 and 7 percentage pay growth for 2021 and 2022 on situation that authorities will now no longer claim redundancies withinside the public carrier and that authorities will maintain to hire younger humans into the general public carrier, including that any situation from an IMF programme with a view to impose pointless worry on them might be prevented.
“We would love authorities to observe that the running humans of Ghana will do something it takes to save you the imposition of pointless hardships on them and the best humans of Ghana,” it stated.
Read the overall assertion below:
COMMENCEMENT OF FORMAL ENGAGEMENTS WITH THE INTERNATIONAL MONETARY FUND (IMF)
On July 1, 2022, the Minister for Information launched an respectable assertion to tell Ghanaians that President Akufo -Addo has directed the Minister for Finance to start formal engagements with the International Monetary Fund (IMF), “inviting the Fund to guide an monetary software prepare via way of means of the Government of Ghana”. The assertion in addition underlined Cabinet's endorsement of the choice via way of means of the President to are seeking IMF guide.
The Trades Union Congress (TUC) considers this choice via way of means of authorities a sad mistake and a unhappy one for Ghana. This might be the eighteenth time our country's financial system might be surpassed over to the IMF to manipulate. It may be very unhappy due to the fact it's miles a clean indication that we can't manipulate our personal affairs.
We completely renowned the effect of world trends on Ghana's financial system. At the equal time, the contemporary country of the financial system shows that the strong financial system authorities claimed to have constructed earlier than the pandemic changed into now no longer resilient enough. It need to were constructed on a “basis of straw” however Ghanaians have been informed that our financial system changed into sturdy and stable.
It is now very apparent that the financial system of Ghana is in a determined situation. But we're of the company view that delivering the control of the financial system to the IMF isn't always the answer to our problems. In the Fourth Republic alone, we've carried out 5 IMF programmes. These IMF programmes have handiest imposed needless hardships on Ghanaians with almost not anything to expose for them. The answers proffered via way of means of the Fund aren't suitable for our financial system. They scratch the rims of the hassle with out tackling the essential problems going through the financial system.
1 The terrible social implications of the non secular way wherein IMF-subsidized programmes have been carried out at some point of the structural adjustment duration are nonetheless very clean in our memories. Tens of heaps of public region employees misplaced their jobs, unnecessarily. For example, the final IMF-Extended Credit Facility programme (2015-2018) changed into conditioned on authorities freezing employment withinside the public carrier, amongst different conditionalities. This supposed that whilst CHIP Compounds have been with out professional clinical personnel, skilled nurses have been picketing on the Ministry of Health and Ministry of Employment and Labour Relations for jobs. That IMF programme produced an affiliation of unemployed graduates for the primary time withinside the records of our country. The programme additionally caused a steep decline in actual wages. The hardships a majority of these IMF programmes introduced on Ghanaians have been large and pointless. What we were given in go back changed into an financial system nonetheless overly depending on manufacturing and export of uncooked substances and import of synthetic products. Most of our efficient sectors including mining, petroleum and telecommunications are nonetheless being managed via way of means of overseas groups.
Our records of engagements with the IMF gives adequate proof that IMF-subsidized programmes and rules can't extrade our monetary circumstances. If we study from records, we might recognize that international locations which have succeeded economically including South Korea, Singapore and China did now no longer comply with the neo-liberal rules primarily based totally at the Washington Consensus which give the idea for all IMF-subsidized programme.
The handiest cause a central authority could need to are seeking IMF bailout is to search for short-time period short repair to our perennial monetary demanding situations. Ghana has accomplished this seventeen instances and authorities has simply introduced the graduation of engagements for the eighteenth IMF-subsidized programme. One issue may be very certain – the eighteenth IMF programme will now no longer resolve our problems. Therefore, we need to be organized for the nineteenth, 20th and greater programmes withinside the following few years, despite the fact that it's so apparent that IMF programmes pay almost no interest to the elimination of structural constraints to sustainable increase and improvement.
What we want now are measures that address the structural constraints to monetary and social improvement. Those measures need to encompass rules and programmes aimed toward finishing the domination of overseas groups withinside the maximum efficient sectors of the financial system, minimise our dependence on herbal sources and construct a strong production base. An financial system that's depending on few herbal sources will maintain to stand financial demanding situations.
We trust strongly that we will gain sustainable monetary increase and improvement if we construct consensus many of the key stakeholders via a true social partnership.
In 2019, the Government of Ghana, represented via way of means of the Ministry of Finance and Ministry of Employment and Labour Relations and Organised Labour represented via way of means of the Trades Union Congress (TUC) and personal region employers represented via way of means of
2 the Ghana Employers' Association (GEA), together known as Social Partners, signed a Memorandum of Understanding (MoU) with the subsequent objectives:
a. Provide a mechanism for constructing a experience of cohesion, trust, self-control, and interact in frank and open discussions with mutual sacrifices and contributions from all stakeholders to champion the route of Ghana's improvement;
b. Provide a platform for achieving countrywide consensus on transformation and improvement problems;
c. Provide a post-IMF Extended Credit Facility neighborhood improvement partnership association amongst Social Partners to make certain the irreversibility of macroeconomic gains;
d. Undertake evaluation on key improvement problems and propose authorities on equal;
e. Deliberate and make inputs on countrywide improvement coverage discourse, consisting of the National Budget;
f. Serve as an inner mechanism to foster accountability; and
g. Inculcate a lifestyle of social cooperation among employees, employers and authorities in any respect ranges of the Ghanaian society.
Our information of the unilateral choice via way of means of Government to start engagements with IMF, with none session with the social partners, quantities to a announcement of the quit of the social partnership initiated in 2019 with the above-noted objectives.
We would love to remind authorities that, as a part of the negotiations for the 2021 and 2022 base pay, we agreed to the 4 and 7 percentage pay will increase respectively on situation that authorities will now no longer claim redundancies withinside the public carrier and that authorities will maintain to hire younger humans into the general public carrier.
We would love authorities to observe that the running humans of Ghana will do something it takes to save you the imposition of pointless hardships on them and the best humans of Ghana.
[SIGNED] DR. YAW BAAH SECRETARY GENERAL ACCRA, 3RD JULY 2022
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