Size of presidential staff too big, wasteful – Prof. Amoako Baah

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Category: Elections & Governance

Created on Wednesday, 12 February 2014 00:00

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Size of presidential staff too big, wasteful – Prof. Amoako Baah

The staff strength of 678 at the Presidency has been criticised as unreasonably large and an unnecessary drain on the public purse.

The Head of the Political Science Department of the Kwame Nkrumah University of Science and Technology, Professor Amoako Baah, says there cannot be any justification for such a large of people to work at the presidency.

He challenged the government to, as a first step in addressing the economic woes of the country, “slim down the government [because] the smaller the government, the less money we spend on the government”.

President John Mahama, acting in accordance with Section 11 of the Presidential Act 1993, which requires the president to submit a list of staffers to Parliament annually, presented a report containing 678 names to the House on Wednesday.

The tall list included four presidential advisors, four ministers of state, 24 presidential staffers and other civil/public service staff.

Professor Amoako Baah told Joy News the President does not need more than two advisors, for example.

He indicated that many of the functions that the presidential staffers and advisors are performing overlap with those of ministers, deputies and directors as well as district, municipal and metropolitan chief executives.

“This is wasteful,” he remarked, adding that the figure is too big for a small country like Ghana that is also reeling under economic hardships.

“When you have all these people around the president, it is not even good for efficiency because each person has to demonstrate his worthiness there, and so when you go into meetings everybody would want to say something or do something to show that he is important there when most of the things they are doing are unnecessary; and which few people can do. It is wasteful,” he asserted.

The list also attracted sharp criticisms from the former Chief of Staff under the Kufuor administration.

Mr Kwadwo Mpiani says the figure is too high; it is “job for the boys”.

He claimed the state spends so much money to pay the salaries and wages of people in public service, and yet they complain of low wages.

“Too many people who are doing nothing at the public sector...there is quite a number of them who do very little... about four people doing the work of one person , it cannot be done in the private sector,” he noted.

But the Minister of Information Mahama Ayariga has defended the numbers saying they are “not farfetched”.

Source:Isaac Essel/Myjoyonline.com

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The Release Of The Cedi From Bondage Appears To Have Failed The Miracle Test

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Category: Business & Finance

Created on Wednesday, 05 February 2014 00:00

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The Release Of The Cedi From Bondage Appears To Have Failed The Miracle Test

That was a very interesting week-end. Government officially informed Ghanaians that the ‘Akomfem’ project in the north, under which the state of Ghana splashed GH¢17 million on the domestication of guinea fowls, which we were told had migrated to Burkina Faso, is officially abolished.

A Methodist Bishop, identified as Rev. Stephen Richard Bosomtwe-Ayensu, is on fire for stating the obvious -that the Mahama administration is a non performing asset which has left the economy gasping for breath and the average Ghanaian struggling to exist.

Another Man of God, self-proclaimed Archbishop Duncan-Williams, founder and leader of the Action Chapel International, broke the spiritual chain, he claimed had held the cedi in bondage and commandeered the local cedi to rise up again. He was preaching at his Spintex Road Chapel in Accra on Sunday.

As bemused Ghanaians tried to make some meaning out of all these, the first rain to fall in Accra in the New Year, brought some relief from the heat.

RAIN IN ACCRA

Unfortunately, it also rendered many parts of Accra, the Millennium Capital city of Ghana, certainly the latest middle income nation in the universe, flooding after barely two hours of downpour.

They all add up to the thrill of living in a country where serious problems are reduced into jokes. There is the small matter of the local Black Stars playing in the finals of the CHAN tournament in South Africa and losing on penalties to Libya, handing the North African country its first continental silver ware, since football became an organized sport in Africa.

In one man’s estimation, the Black Stars’ performance was as mundane as the Government of the Republic of Ghana. “The Black Stars played like Mahama’s Government,” a street hawker joked, referring to lack of cohesion and indecisiveness that characterized the national team’s performance in South Africa.

It was the week-end that was. The new star at Jubilee House, Ben Dotsei Marlor, officially described as Communications Adviser to the President and Head of Communications at the Presidency, issued his first press release and courted so much controversy.

Apparently, the Communications Director got his own designation wrong. Ben Dotsei Marlor signed as Presidential Spokesperson. The press release was also one year late. It was dated 2013 instead of 2014.

It is not known whether the official designation communicated to this hapless nation, announcing Mr. Marlor’s appointment has changed. If it has not, Mr. Ben Dotsei Marlor should be addressed as Communications Director to the President, and Head of Communications.

I would like to believe that the mix-up in the date was purely accidental. But then again, it tells much about how messy things are at Jubilee House at the moment.

The guinea fowl episode for instance, cannot be wished away by directing the abrogation of a contract that did not exist in the first place.

Both Mr. Gilbert Iddi, the immediate past Chairman of the Savannah Accelerated Development Authority and his successor, Dr. Charles Jebuni, say SADA had no contract with the Asongtaba Cottage Industry in respect of the infamous guinea fowl project and the failed pilot GH¢33m afforestation project.

If it were so, the issue is not simply announcing that the two non-existent contracts had been abrogated. Who paid those monies and who received the GH¢50 million paid in respect of these two projects?

The people of Ghana are interested in recouping the money and not roof-top advertisement of cronyism. For the new head of communications at the Jubilee House, the baptism of fire should dawn on my good friend, Mr. Ben Dotsei Marlor that he has a very bad message to sell.

If I were him, I would keep the family away from the shores of Ghana until I am sure of a safe job. It is a very murky world in the Mahama administration, I dare state.

When former President Jerry John Rawlings described the youth in deceased President John Evans Atta Mills’ administration as ‘Babies with Sharp Teeth,’ he was spot on.

These are young men with the tendencies of Rottweilers and devouring anybody who dared criticize the moribund administration that has led Ghana into a deep economic hole.

SQUAD

When President Mills visited his ancestors, many political pundits began writing the obituaries of the marauding squad. Apparently, the ‘Babies with Sharp Teeth’ had only gone into hibernation.

At the week-end, they re-emerged with the venom of vipers. Mr. Okudzeto-Ablakwa, Deputy Minister of Education, Kwadwo Twum-Boafo, Chief Executive of the Free Zone Board and Mr. Victor Condubrey, former Chief Executive of the Hohoe Municipal Council, all proudly wearing their umbrella badges, backed by a section of the criminally-rented NDC press, tore into the Methodist Bishop of Obuasi, Rev. Stephen Bosomtwe-Ayensu, for daring to state that the Mahama administration had failed to perform.

In the diction of these ‘BABIES’ and some other followers of the NDC, any person making negative comments about government performance must be seeking protection under the elephant.

Over the week-end, one of the most acidic mouths in the NDC broke ranks with the party praise singers and virtually attacked Archbishop Duncan-Williams, a known man of God, with a soft spot for the reigning party.

SPIRITUAL SPELL

The head of Action Chapel claimed on Sunday that he had broken a supposed spiritual spell that is responsible for the free fall of the cedi, the local currency against the major trading currencies, especially the dollar.

“I hold up the cedi with prayer and I command the Cedi to recover and I declare the Cedi will not fall… It will not fall any further. I command the resurrection of the Cedi. I command and release a miracle for the economy.”

The self-proclaimed Archbishop led his congregation to pray for the President of the Republic of Ghana, Minister of Finance Seth Terkper, and Governor of the Bank of Ghana, Dr. Henry Kofi Wampah, asking for divine intervention to streamline the economy.

“In the name of Jesus, I say Satan take your hands off the President; take your hands off the Central Bank and the Finance Minister. We release innovation for the President, my God, the Governor of the Bank of Ghana, Central Bank, in the name of Jesus Christ, the son of God, the Finance Minister. We command new ideas, breakthroughs and a miracle for the economy. Let the Cedi rise in Jesus name,” Archbishop Duncan-Williams prayed.

The news in the Archbishop’s miracle is that a day after the Cedi was supposed to have been released from bondage, its value fell again. Official release from the Bank of Ghana yesterday, quoted the value of the cedi at GH¢2:40 to the dollar.

On Sunday, when the leader of the Action Chapel was performing his miracle, the cedi was exchanging for GH¢2:39. At the forex bureau, one could sell the dollar for GH¢2:43 at the forex bureau. On the other hand, one could buy the dollar at GH¢2:55.

Immediate reaction on the currency market does not appear to support the Archbishop’s miracle. It is a far cry from the instant result recorded in the miracle performed by Peter and John, when they encountered the cripple at the entrance to the Church of Beautiful.

According to the Holy Book, when the cripple demanded alms from the two disciples of Christ, Peter responded: “Silver and Gold have I none. What I have I shall give thee. In the name of Jesus Christ of Nazareth, rise up and walk.”

The Bible says, immediately the cripple rose up and followed the two disciples into the church, glorifying God.

POWER

With the Cedi falling a day after being released from bondage, many faithful are beginning to question the source of the power of the Archbishop of the Action Chapel International. A number of Christians believe though that God’s intervention may not be instant.

Whatever it is, the pronouncement from the leader of the Action Chapel International is an innovation in invoking the spiritual realm to solve matters that are purely the making of men.

One other mystery that remains unresolved is why the creation of a Millennium City in Accra is failing the flooding test. It looks like the more authorities de-silt the Odaw River and its lagoon, the more Accra is prone to flooding.

On Saturday, the rain fell for just under two hours and yet the devastation caused by the floods in Accra, could not be quantified.

It only tells the story that roof-top advertisement never builds a ‘Better Ghana.’ Like the economy, we are reaping the result of building infrastructure on the campaign trail, with very little on the ground. ‘Better Ghana’ is far from becoming a reality.

Source: Ebo Quansah/The Chronicle

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Otumfuo Akwaaba

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Category: Culture & Tourism

Created on Monday, 10 February 2014 00:00

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Otumfuo Akwaaba

The phone calls started on Thursday, January 30, and remained relentless and incessant through the weekend: “Kofi, have you heard the news?” For whatever reason, the callers both in the USA and Ghana were seeking confirmation from me regarding the veracity of claims making the rounds on radio and internet pertaining to Asantehene Otumfuo Osei Tutu II, who ascended the Sikadwa (The Golden Stool) on 26 April 1999. But the calls were not about preparations to mark celebrations commemorating fifteen years of successful reign.

To say that Otumfuo is revered is to state the obvious. Any news about the Asantehene is big news, and spread like wild fire. When some of Otumfuo’s gold ornaments were stolen in October 2012, at a hotel in Oslo, Norway, for example, it was reported prominently by the international media, not to speak of Ghana’s.

However, to even whisper any ill will about Otumfuo is deemed so abominable and repugnant that the Twi word for such unspeakable act against the Asantehene is “hyira’, that is blessing. It is said “obi ahyira Ohene;” or someone has ‘blessed’ the King being the euphemism to explain the unmentionable. In the past, such act of ‘blessing’ would invite certain death, and other forms of punishment against entire families of the perpetrators. Propitiation would have to be done to reverse the curse that might result. Of course, as my school mate Titihoya used to respond at the mention of his ‘guy name’-Time Changes - so, these days people speak without reckoning.

Showing respect to the Asantehene, and not speaking ill will of him, however does not imply Asantes do not criticize their King. Sometimes these criticisms take the form of rumours and other contrivances! Indeed, Asantes are not immune to holding their King and Chiefs accountable. Throughout our history Asantes have not been hesitant to bring charges against their King and Chiefs who perform below the peoples expectations. There is very little docility in the Asante character; notwithstanding Asantes surfeit of goodwill and respect for authority and tradition.

In fact, four of our Kings were destooled for various malfeasance that the people deemed inimical to the growth and welfare of the Asante Nation.

Asantehene Kusi Oboadum who reigned from 1750-1764 was forced to abdicate, abdication being the Asante euphemism for ignoble destoolment. Osei Kwame who reigned from 1777 to 1803, was destooled; his own mother Nana Konadu Yiadom was the lead accuser of his son’s incompetence. Similar fate befell Kofi Kaakari and his successor Mensa Bonsu in 1874 and 1883 respectively. These two men were incredibly corrupt and incompetent. Kofi Kaakari for example earned the derisive accolade “Osape” and “Akyempo,” because of the rather profligate manner he destroyed the Asante national treasury through wanton extravagance and corruption.

These examples indicate that while Asantes may be wedded to their King, whenever Asantes sense that the leader is not providing leadership as they wish he would; or that the King seems to be engaging in acts that may bring disrepute to the body politic, tongues begin to wag. That is the epitome of the bold Asante character birthed and enshrined on that fateful Friday in January 1701 when the Chief Priest, Prophet Okomfo Anokye commanded the Sikadwa or Golden Stool from Heaven, and affirmed the soul and character of Asante on that day. (I get goose bumps relating these facts [or as we say in Twi, ‘awosee agu me’]: let me take a shot of Schnapps before I can continue).

To wit: Kumasi which was called the Garden City of West Africa by the British, has now become, as my nephew told me in dismay, the City of Billboards. These eyesore billboards include outdoor advertisements for all manner of products. Even more distasteful are the huge billboards announcing the death and funerals of the dearly departed. And not only that, there are billboards commemorating the anniversary of people who have been dead a long time. This is totally disgraceful. Now, I am writing this article on February 6, 2014, exactly 10 years to the day that my dear mother departed this life. She would never approve his image adorning a piece of plywood commemorating the anniversary of his death!

That we allow these eyesore to populate the metropolis and other towns underscore the level of retrogression that we have undergone as a people.

I was going to appeal to the civil authorities in Kumasi, until I was made aware that several billboards announcing “Asanteman welcomes Mayor Kojo Bonsu,” populate all the major entry points to Kumasi. I do not begrudge Kwadwo Bonsu’s good fortune, but these billboards must be removed without ceremony.

I respectfully call on Otumfuo Osei Tutu II to use his immense authority and good offices to cause the removal of these monstrosities and condemn them to garbage. The removal of these billboards should be undertaken in all towns and villages in Asanteman, and indeed throughout Ghana, wherever such ignoble practices are in vogue.

Other matters in Asanteman obviously cause concern. Among these is the “Sofoline Interchange,” a road project began in Kumasi under the previous government, then continued at a snail pace by the current government, until left uncompleted, and now totally abandoned. Lest we forget about the construction of the Military Hospital at Kwadaso, Kumasi to cater to serving and retired military and other forces, and the general public in the Northern Sector of our country. That project was abandoned in 2011, I recall watching a military spokesman, a Colonel, being interviewed on television and responding to a questioner -- ‘that order came from above.’

Of course, the abandonment of the construction of the Inland Port at Boankra in the Asante Akyem area invites particular opprobrium. A laudable project started during the administration of President Rawlings is now virtually abandoned. Herds of cattle and indisciplined herdsmen are given free reign in destroying our lands, farms, and trampling our streets. Additionally, there is the destruction of our environment by foreign and criminal Chinese mining enterprise and their Ghanaian cohorts. There is also the ongoing issue of the insidious attack on the life of Lake Bosumtwi, and other river and water bodies in Asante and Ghana, through unregulated "farm fishing." Is nothing sacred anymore in Asanteman and Ghana? There are whispers that Chiefs who must protect the environment are hand in gloves with the perpetrators of these damaging and dastardly acts.

There was a time when our forbears held some things sacred which we seem to have abandoned. Three hundred years ago, trash was burned in Asante as a matter of public sanitation. Three hundred years ago our forbears believed rivers and streams were not to be trifled with as a matter of public policy. Therefore, when farms were made, they left the brush and trees around rivers untouched to provide shade and sustenance for the river. People prospected for gold (now called galamsey) three hundred years ago in my hometown of Asuonwun in the Amansie area of Asante, for example, but it was controlled. In those days, it was against the law, custom, and tradition for the prospectors to work even close to a river or dwellings.

Today, our towns and cities are filled with decomposing trash; and our rivers have been polluted and destroyed through galamsey.

It is evident that serious problems afflict Asanteman and Ghana; and these issues cry for leadership action. Ghanaians have an aphorism that a village without a Chief does not progress. On a wider level, when General Acheampong sought to introduce his atrocious Union Government political idea, the Ghanaian public was much incensed. At the University of Ghana and elsewhere, even non-Asante students were calling for leadership from the Asantehene on that issue. The moral leadership of the Asantehene is immense, palpable, and recognized.

Perhaps Asantes are beckoning for leadership on matters that affect their region and their lives. Perhaps they want to rattle Otumfuo just a little bit. Perhaps that explains why all these contrivances, some unspeakable and unmentionable surface intermittently.

According to news reports and photos, Otumfuo wiped his eyes upon disembarking at the Kumasi Airport. Could be that Otumfuo was genuinely touched by the love and admiration of the throng of people who welcomed him. Or, could it be, as my precocious nephew surmised, Otumfuo’s sadness at the sorry state of the Kumasi Airport where a plane cannot land after 5PM because lights have not been installed to ensure planes can fly to Kumasi at night, compared to what he saw in South Africa.

Aprill 26, 2014, marks the fifteenth anniversary of the reign of Otumfuo Osei Tutu Opemsuo II. I will be at Manhyia to toast and commend Otumfuo. It has been fifteen years of exceptional leadership. And, as honest as my great ancestor Obrempon Firam Gyeraba served him from 1690 (yes right, 1690) until now, I will pray in honesty that Otumfuo begins his 16th year with vim and renewed vigour to continue to endear him to people all over.

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Twitter: @KofiEllison

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The Mysteries of the Colonized Cedi

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Category: Business & Finance

Created on Wednesday, 05 March 2014 00:00

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The Mysteries of the Colonized Cedi

Review: Measuring The True State of Ghana Economy Through Prudent Application of Basic Economic Theories: Demand & Supply; Scale of Preference; Opportunity Cost; The Economies of Scale and The Bloomberg FT’s recent Economic Predictions on the Falling Ghanaian Cedi

DUBAI: ECONOMIC OVERVIEW

“The economy of Dubai is one of the most unique and unusual in the world. As an entrepôt, (or free port or porto franco) duties and taxes are not imposed on imported goods. Dubai has numerous free zones including Jebel Ali free zone, Dubai Maritime City, Dubai Internet City, and Dubai Media City. The free zones in Dubai have attracted considerable foreign direct investment (FDI). Combined, the internet and media free zones are called TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority). Within them are large multi-national firms such as Microsoft, Oracle Corporation, IBM, and EMC Corporation; BBC, CNN, Reuters, Sky News, and the Assoiated Press are in the media free zone. While many believe Dubai's economy is totally driven by oil and gas, that sector only comprises less than 6% of Dubai's economy. In fact, Dubai's portion of natural gas revenues in the United Arab Emirates is only about 2%. Dubai's oil production is estimated to be about 240,000 barrels per day. By the height of the boom years in 2007, Dubai had come to epitomise 'bling' or extravagence on a national scale. It contains the largest building in the world (the Burj Khalifa), and many other largest/ biggest/ deepest projects, such as the seven start Burj al-Arab hotel and the man-made Palm Islands. However much of this construction boom has been financed by debt. By the start of 2010, the emirate as a whole owes anywhere between $80 billion and $120 billion. Government-linked Dubai World almost defaulted on its debts at the end of 2009, and was saved only by oil-rich neighbour, Abu Dhabi. Its biggest challenge now will be riding out the debt repayment and confidence challenges to take advantage of the fantasy-like infrastructure it has built.” (http://www.economywatch.com/world_economy/dubai) As a resident Ghanaian how do you measure the true state of the county’s current economic indicators?

COMMENTARY

This commentary is premised on basic economic knowledge on the fundamental rules governing demand and supply; opportunity cost; scale of preference; economies of scale, and “The Wealth of Nations” as espoused by renowned economists Adam Smith and commented by one of our cherished authors- Yaw Owusu-Asante, celebrated for his famous O-Level Economics Textbook- “Economics Without Tears”.

The caveat here is that the author of this commentary is not an economist and therefore must treat this attempt as an elementary. As an ordinary citizen of Ghana, to measure the true state of the nation’s economy as observed by Flt-Lt. Jerry John Rawlings, rests on your own stomach: thus, if you are a worker, unemployed or pensioner/retiree relying on the handouts of government, families or relations but do not feel the value or worth of your wages, salary or support at the marketplace where the purpose of your salary or honorary were to be measured, then you could be the best person to feel the real impact of the national economy. The same could be true of people from all walks of life, including children, legally involved in various forms of economic activities within the country in which they reside.

In Ghana, there seems to be no established standards of measuring unemployment- especially, amongst the teeming youth and the difficulty governments struggle to meet the monthly payouts to pensioners or retirees. The global economy and markets are however; quick to respond whenever the chase of the national currency- the Cedi, becomes unstoppable, thereby, forcing its commanding and facilitating roles into financial abyss and hopelessness as the national currency plays fiddle to major world currencies such as the United States Dollar; the British Pound, the Japanese Yen and the Euro.

The classical case in point is the recent fall of the Ghanaian Cedis where Bank of Ghana (BoG), was called upon by the teeming economic stakeholders to hem the national pride which carries the statues and the monuments of the country’s cherished founding-founding-fathers and mothers, so as to avoid the humiliating walkovers by crusading forces and empires from abroad. The forecast; according Bloomberg FT report, is that the Ghanaian Cedi, “will remain under pressure as importers continue to seek scarce dollars to pay for goods procured on credit during the holidays as well as buy fresh stocks for the New Year. So the BoG, said to have been cautious about using its international reserves too quickly to ease the shortage of dollars, nervously, injected $20 million to meet the demands in selected sectors. But the amount; in the quoted words of the Bloomberg, was seen as paltry, with banks saying the central bank must intervene more vigorously lest the cedi, which fell by 3.1 % against the dollar in January, gives up further ground to not just the greenback, but also the euro, pound and the CFA.

This brings us to the fundamental concept of demand and supply as espoused by Adam Smith and commented by Yaw Owusu-Asante and more recently; read from businesscasestudies.co.uk, which states: “The term demand refers to the quantity of a given product that consumers will be willing and able to buy at a given price. As a general common sense rule- 'the higher the price of a particular product the lower will be the demand for it'. The term supply refers to the quantity of a particular product that suppliers (producers and/or sellers) will make available to the market at a particular price. The higher the price, the greater the quantity that suppliers will be willing to supply to the market. Markets consist of individual or groups of businesses that are prepared to supply a product, and customers who demand [or want]the product. Market price is determined by the interaction of the forces of demand and supply.”

But Wants- as “Economics without Tears” emphasized, is simply a desire for a product; and must not be misconstrued as effective demand which is supported with a purchasing decision. Businesscasestudies writes that for demand to be effective the consumer needs to have the money required to make the purchase. “Elasticity of demand refers to the sensitivity of demand to a change in price. The more sensitive demand is (i.e. the more it changes) to a price change the more elastic it is said to be.” So what are the forces behind the cedi/dollar race for overseas trade in products such as rice, garments, poultry and leather which have its composite in Ghana? In the words of Businesscasestudies.co.uk, “Nowhere is this truer than in the development of new production technologies leading to the production of high volume low cost goods.” This means that the Ghanaian manufacturer/farmer, lacking in this basic technological know-how and economies of scale, can be faced with economic realities of high pricing.

Taking Corporate Ghana as a marketplace, it is suggested that an important aspect of marketing is knowing what the demand is for your products. “All companies engage in marketing activities to find out what the demand for their different products will be. For example, Coca-Cola will want to investigate market trends in the carbonated drinks sector, while a bank will want to find out about the demand for financial services. Armed with this information they are able to make appropriate pricing decisions based on what other suppliers are doing, as well as on the demand from consumers in the market,” says businesscasestudies.co.uk. And as we all know; every consumer- being it a service or product, want to compare prices before making informed choice on the basis of his/her financial capabilities and of course within certain time-constrained. So if you spend weeks or decades in having a product manufactured or say, you spend a huge service or direct production cost that makes your final production cost price expensive then obviously, the turnover of that product or service might struggle.

Many Ghanaians, it seems, troop to Asia- specifically, China or Dubai, for familiar products such as textiles, cosmetics and even frozen chicken wings, probably, not because of their outstanding designs, makes or the economies of scale that they enjoy but perhaps, due to the psychological effect that everything origination from Ghana has some doubts or low quality. Yet there had been reported cases where Ghanaian invented print designs are sent to China or elsewhere for reproduction for re-export to the country under the guise of foreign trademarks. There had also been a case where it is told that in an attempt to raise image a Ghanaian produced rise- either from Avatime or else in the Northern Ghana, are sacked in trade-marks purported to have been originated from the United States or from Bangladesh.

Of course there are good omens about economies of scale which includes maximization of production at a lower cost and service time-scale, and where for example, it is easier for large firms to carry the overheads of sophisticated research and development (R&D). But the Economist of UK (Oct 20th 2008) argues that economies of scale, however, have a dark side, called diseconomies of scale. “That the larger an organisation becomes in order to reap economies of scale, the more complex it has to be to manage and run such scale. This complexity incurs a cost, and eventually this cost may come to outweigh the savings gained from greater scale. In other words, economies of scale cannot be gleaned forever.” So travel destinations such as Japan or China; known for its technological breakthroughs, in the same way as Ghana, could also not immune to this. Frederick Herzberg, a distinguished professor of management, is said to have also suggested a reason why companies should not aim blindly for economies of scale:

“Numbers numb our feelings for what is being counted and lead to adoration of the economies of scale. Passion is in feeling the quality of experience, not in trying to measure it.” T. Boone Pickens, a geologist turned oil magnate turned corporate raider, is said to have written this about diseconomies of scale in his 1987 autobiography: “It's unusual to find a large corporation that's efficient. I know about economies of scale and all the other advantages that are supposed to come with size. But when you get an inside look, it's easy to see how inefficient big business really is. Most corporate bureaucracies have more people than they have work.” My O-Level Economist Master- Prince Eyeson explained some decades ago that when you add a variable factor [cocoa plant, cassava plant and a shea-butter tree] on a fixed farmland for some time, output will increase and later decrease. The same could be true of a government, the entrepreneur, or the Dubai/China businesswoman or businessman. If you put pressure on the resources of your workplace or your local currency then you are likely to experience financial or workplace crisis.

Thus if you employ more than the necessary employees needed to do the same piece of work at the same given time and place then chances are that the result will initially rise but eventually decline with inefficiency as overcrowding and lukewarm attitudes begin to set in. On the part of the Ghanaian-China trader, the higher demand you put on the dollar or the pound or the number of times you flock to China for business but without corresponding product/service trading, the consequences are that the worth of your local currency including your nation’s traditional products, are likely to sacrifice its image. The Bloomberg report observes that at the start of 2014, the exchange rate was GHC 2.335 to the dollar, but it slipped to 2.45 Cedis by the end of January and on 04 February it was pegged at 2.4650 to the dollar.

Mr Inusah Musah- Head, Global Markets, at Stanbic Bank in Accra, is quoted as saying: “We are also experiencing a supply issue because the mining sector, which is one of the key forex providers in the country, is going some price challenges. And once you have more demand than supply, naturally, you expect the push.” “Basically, what we have seen from the beginning of the year is that the currency has come under pressure mainly from strong demand on both the corporate and retail side. We are also experiencing a supply issue because the mining sector, which is one of the key forex providers in the country, is going some price challenges. And once you have more demand than supply, naturally, you expect the push.” Though the BoG has supplied dollars to aid the import of oil, non-oil demand - which is also strong - has not been met sufficiently,” he said. Bloomberg quotes a banker who keeps his eye on the currency market - but asked not to be named because he is not authorised to speak as saying: “the remainder of the first quarter is a critical period for the market, with more depreciation pressure on the Cedi' expected from multinationals that will be buying dollars to repatriate dividends to shareholders.”

In the words of Bloomberg “the Bank of Ghana seems to be in a quandary,* however: its reserve's, which per the report, stood at US$5.6billion in November, are enough for only 2.9 months of imports compared to its target of 3 months- and hot all of it is liquid, which limits the extent of its interventions.”

But who must be blamed for these economic/financial uncertainties- the devil, leadership or ourselves? We want to have a car, wish to have a trade, a house, a wife or probably, to have a degree all but with a fixed savings or income? We must make a choice by drawing what economists describe as scale of preference- usually or prudently, by putting the most reasonably important ones at the top of the scale? Most of us including our leaders- both in governance or traditional settings- wanted to be remembered for fanciful things- for example, ostentatious kente or adinkira cloths, jewellery or magnificent buildings instead of viable plough-back investments such as educational sponsorships or establishment of industries which could offer a life-long economic and social leanings to family, country and the unborn generations. The Ask.com defines scale of preference as a basic economics concept:

“It means that there is a list of wants that everyone has that they want to satisfy. This list is then placed in order from most important to least important in terms of needing satisfaction.” Because we all have to make a choice over so many variables that might come on our ways: whether we have to travel to Nigeria, Togo Ivory Coast, China, Dubai, the UK, to do business, there is always going to be a missed alternatives known economics term as opportunity cost for not having that thing. According to opportunity cost is usually defined in terms of money, but it may also be considered in terms of time, person-hours, mechanical output, or any other finite resource. “It is the opposite of the benefit that would have been gained had an action, not taken, been taken- the missed opportunity. The concept of opportunity cost may be applied to many different situations. It should be considered whenever circumstances are such that scarcity necessitates the election of one option over another.” What then, is the opportunity cost of the Ghanaian? In their article: “Europe's meat waste on African menu”, Deutsche Welle (20 Jan 2014) wrote this under the sub-title: “Millions made by selling poultry to Africans”:

“In 2003, Ghana's Parliament tried to fight the cheap imports by increasing in import duties, but after a short time, the government overturned the law.”I think it was the pressure from the international community," says Quame Kokroh from the Ghanaian Poultry Association…"Ghana was negotiating with the World Bank for a debt relief loan at the same time. If the government had not backtracked, then the state would have lost a lot of money." JusticeGhana puzzles: If our great-great-great ancestors were able to mould mud-house in the Stone Age of Wangara; why struggle today, to refurbish our presidential retreats and palaces with our homemade materials and the asafo? You might want to read our earlier article: “Travellers Without Destination”; to understand why the crushing Cedi by invading economic crusaders, deserves no spiritual intervention but rather attitudinal change premised on our own strengths.

Researched and Compiled By Asante Fordjour for The OmanbaPa Research Group

JusticeGhana

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