The Trades Union Congress (TUC) has portrayed as 'lamentable error' and 'miserable' choice, the Akufo-Addo government's transition to look for help from the International Monetary Fund (IMF) to restore Ghana's debilitated economy.
In an emphatic explanation, the worker's guild said while it values the difficulties confronting the economy, it doesn't completely accept that that going under an IMF program is the best arrangement.
"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," 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 just like 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 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. The majority of our useful areas, for example, mining, petrol and media communications are as yet being constrained by unfamiliar organizations."
The Ministry of Information on Friday, July 1, 2022, declared that President Akufo-Addo had given endorsement for Ghana to start commitment with the IMF for a bailout.
The TUC said it was miserable 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 assistance and that administration will keep on utilizing youngsters into the public assistance, 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:
Initiation OF FORMAL ENGAGEMENTS WITH THE INTERNATIONAL MONETARY FUND (IMF)
On July 1, 2022, the Minister for Information put out an authority announcement to illuminate Ghanaians that President Akufo - Addo has guided the Minister for Finance to start 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 an unfortunate slip-up 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 extremely miserable on the grounds 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 powerful economy government professed to have worked before the pandemic was not sufficiently strong. It probably been based on a "groundwork of straw" however Ghanaians were informed that our economy was solid and stable.
It is currently plain to see 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 superfluous difficulties on Ghanaians with hardly anything to show for them. The arrangements proffered by the Fund are not fitting for our economy. They scratch the edges of the issue without handling the principal issues confronting the economy.
1 The negative social ramifications of the strict way in which IMF-supported programs were executed during the underlying 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 adapted on government freezing work in the public assistance, among different conditionalities. This intended that while CHIP Compounds were without gifted clinical faculty, 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 lofty decrease in genuine wages. 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 reliant upon creation and commodity of unrefined substances and import of fabricated items. The greater part of our useful areas, for example, mining, oil and media communications are as yet being constrained by unfamiliar organizations.
Our set of experiences of commitment with the IMF gives adequate proof that IMF-supported projects and arrangements can't change our monetary conditions. On the off chance that 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 strategies 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 transient handy solution to our perpetual monetary difficulties. Ghana has done this multiple times and government has recently reported the initiation of commitment for the eighteenth IMF-supported program. One thing is exceptionally sure - the eighteenth IMF program won't take care of 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 essentially no consideration to the evacuation of primary requirements to maintainable development and improvement.
What we want presently are measures that tackle the underlying limitations to financial 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 strong assembling base. An economy which is subject to not many regular assets will keep on confronting monetary difficulties.
We accept firmly that we can accomplish feasible monetary development and improvement on the off chance that we fabricate agreement among the vital partners through a veritable 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 businesses 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 targets:
a. Give a component to building a feeling of union, trust, self-administration, and participate in candid and open conversations with shared 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 nearby improvement organization plan among Social Partners to guarantee the irreversibility of macroeconomic increases;
d. Attempt investigation on key advancement issues and exhort government on same;
e. Intentional and make inputs on public improvement strategy talk, including the National Budget;
f. Act as an interior component to encourage responsibility; and
g. Teach a culture of social participation between laborers, managers 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 conference with the social accomplices, adds up to a statement of the finish of the social organization started in 2019 with the previously mentioned goals.
We might want to remind government that, as a feature of the exchanges 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
blogpay
