KB Asante: Voice From Afar column

It is good that Ghanaians are recalling what happened in our recent history.  Thoughtful reflections as well as recall and assessment of past events enlarge our horizon and enable us to avoid the repetition of acts of folly.  I was, therefore, glad to read Colin Essamuah’s Daily Graphic article on Ghana’s first coup and Razak El-Alawa’s reflections on the rule of Kutu Acheampong.  In both cases we could do with more in-depth accounts of events and space should be allowed to permit this.

We also need robust, painstaking, objective studies of the aims and achievements and shortcomings of our past Prime Ministers and Presidents.  It is such studies which assist us to avoid flaccid arguments and misguided suggestions about the past.

Prof. Addae-Mensah’s book on Limann is an excellent example of the studies we need.  Perhaps scientists by their training and calling are well-suited for such penetrating and unbiased research as has also been excellently executed by another Prof. Addae who is a Professor of Medicine as well as a distinguished historian.

And so, let us as we survey the work of past heads of state and government, allow facts and reason and not party affiliation to determine our conclusions. 

It is 44 years since the second military coup d’état led by Col. Ignatius Kutu Acheampong took place.  People were not happy with the economic situation before the coup as they are not happy today.  Dr Busia was however aware of the mood of dissatisfaction of the people.  He did say that he knew what he was about and he was prepared to continue on what he deemed to be the right path even at the risk of being rejected at the next election.

Was this arrogance on the part of Dr Busia? Or should governments pander to the “desire of the people” so that they may win the next election with puerile measures which make the economic situation worse? Government has the formidable information service institutions to assist it to explain and promote its policies.  Were the institutions properly used by Busia and are we doing any better today?

Dr Busia found the value of the Cedi untenable and Col. Acheampong reversed the devaluation.  This reduced prices, if one could get the goods!  Fortunately, he realised that without adequate control of imports and exports the devaluation would not restore the health of the economy.  He tackled the problem at its roots.

Strange enough what Acheampong did to rouse the nation together and feed the people was to implement Busia’s rural agricultural policy.  Dr Busia had rightly conceived a major agricultural policy leading to greatly increased production as a means of arresting economic decline and social unrest.  Col. Acheampong translated the policy into a national crusade.

The slogan “Grow What You Eat And Eat What You Grow” became the patriotic cry.  Even professionals in the cities grew vegetables, pawpaw and bananas in their backyards.  Col. Bernasko led rice production in Dawhenya while production was greatly increased in the north.  Civil servants who were unhappy to be transferred to the north now did not want to return to the south because they found rice production in their spare time lucrative.

Of course farming implements and inputs had to be imported.  Some critics say that this made produced-in-Ghana rice expensive and depleted the few dollars available. 

Those who subscribe to free trade under any circumstance will argue that market forces should be allowed free rein to ruin lives.  The debate in this field would perhaps never end.  But real statesmen who have to feed the hungry will not allow dogma to starve their people.

I had in 1972 returned to Ghana after some five and a half years in Switzerland with the aim of turning the Foreign Ministry into a modern diplomatic institution.  I was thwarted.  Surprisingly Col. Acheampong whom I did not know and had never met sent for me.  He said he had heard I was not happy and he wanted me, a good economist, to go to the Ministry of Trade and Industry to help with the running of the economy.  I said I was no economist.  In Geneva I looked after Ghana’s interests in Trade and Development, Health (WHO), Labour (ILO) etc. Without adequate support from home I had to read and master the documents presented at meetings so that I could adequately promote Ghana’s interests. In reality however I was no economist nor health and labour expert so I asked the Colonel to find a more suitable person.  But he said I had impressed many people and more importantly I had a reputation for not taking bribes and not being corrupt.

The Colonel continued that he had been told that his policy of not paying for debts (yentua) had frozen all credits and we had to live by the dollars we earned from our exports.  Corruption would dissipate these earnings and lead to economic chaos.  He asked me to accept the posting in the national interest.  I did and so it was that I went to the Ministry of Trade and Industry with the special title of Senior Principal Secretary.

Dr Donkor-Fordwor was in reality the Minister of Finance at the time (the Col. kept the title) and he and Dr Amon Nikoi were the principal managers of the economy.  I joined them to form the Apex Committee for economic management which meant using our meagre resources to supply our needs and foster economic growth.

I was not that knowledgeable about the allocation of resources.  Fortunately a technical committee was formed with Dr. J.L.S. Abbey as head to advise the Apex Committee on the allocation of inputs for production and other needs.  I soon found the young Abbey to be an exceptionally competent economist and a brilliant statistician.  With inadequate information he produced a model on which I based the allocation of licenses.  I had done a little statistics and I therefore appreciated Abbey’s superior knowledge and good guidelines.

I produced and submitted a programme to the administration which could only be modified by the whole Council or government sitting together.  I had some years earlier discussed with my young friend, J.H. Mensah, the brilliant political economist, how the American and other economies progressed despite some waste.   He said “You may allow some  four per cent “waste” but if you look rigorously well after the rest you should succeed”. I applied that idea.  I gave some two per cent of the licence to be used by the Council in their absolute discretion.  Thereafter the plan could not be amended except by the executive Council meeting together.

A few weeks after the operation began some friends in the Council came for special licences!  I politely refused after very friendly chats. And so, the import licence regime proceeded and our needs and supplies for our factories were met if not completely, at least satisfactorily.  Exports were also monitored and controlled so that receipts from timber and other products were directed into government chest.  The exercise was not perfect.  But essential needs were met.  I was glad to work round the clock on so many committees to promote the economy and the national interest.  Many worked similarly hard.  I worked within the rules and procedures without unnecessarily consulting higher authority.  Those who were aggrieved by my action and went to see my immediate boss Col. Felli or Col Acheampong himself were sent back to me.  And so it was that I got European Funds under the Lomé Convention used to construct the Elubo/Takoradi road.

For some reasons the European officials concerned were not keen on building the road.  They seemed to prefer many small projects throughout the country.  My superiors were approached but all enquiries were directed to me.  Eventually the Head of DG8 Claude Cheysson came to Accra.  He was received with great courtesy.  He stayed in the State House and met the Head of State.  But he had to negotiate with me.  Cheysson who later became French Foreign Minister was an experienced and astute politician.  We agreed on the construction of the Takoradi/Elubo road in accordance with the policy of Regional Integration.  Would such a thing happen today or would the Head of State agree with the European officials?

Somehow, Acheampong’s policy changed.  He or his close aides began interfering in the issue of import licences.  I detected anomalies and asked for reports and figures.  Military Intelligence had also smelt some corrupt deals.  Major Agyemfra was asked to lead investigation.  Our paths crossed and I asked the competent military man (who later became a General) with superior resources to lead investigation into the matter.  He unearthed unpleasant facts and he was posted to India!

Meanwhile questionable characters had wormed their way into the corridors of power.  One approached me to stop excessive prying into what went on.  I would be removed if I did not comply, he threatened.  I did not and I eventually found myself in Brussels.

The Apex Committee was scattered.  Dr. Donkor-Fordwor became Head of the African Development Bank and Dr. Amon Nikoi was removed.  Do we still have Ghanaians of questionable competence and much influence in the corridors of power to derail progress?

In the case of Acheampong his policies did not please the International Community of the West.  It was Dr. Amon Nikoi who called my attention to this and the advice of Acheampong’s new friends that he should abandon the “yentua” policy so that loans and assistance would pour in from outside.  He would then rule like a real President who could extend largesse to his friends, especially the young girls.

Dr. Amon Nikoi referred me to comments of Joan Robinson in the Modern Cambridge Economists series.  Her comments were developed in the book “Aspects of Development and Underdevelopment”.

Joan Robinson wrote:

 “An exception which proves the rule was provided by Ghana in 1972.  A military government took power, abrogated the onerous terms of settlement made with its predecessors and decreed its own terms for renouncing and rescheduling debts.  Ghana was promptly cut off from trade credit from its usual suppliers.  Imports were strictly rationed and a campaign begun to grow more food at home.  To avoid a confrontation which would have put ideas into the heads of other debtors, the World Bank quickly organized a settlement on terms far more favourable to Ghana than the preceding one.  Credit was restored, imports came in again, and the patriotic dash for self-reliance petered out”.  But can we do without financial discipline? Do we have to spend our way to bankruptcy and go to the IMF for assistance and advice? To live far beyond one’s means is as stupid for an individual as it is for a nation.  Our governments should administer our resources well or we shall become a beggar-nation.  We should confront problems with common sense, hard work and national fervour.

Government should whip up enthusiasm to consume made-in-Ghana goods when necessary.  A sensible import programme which takes account of international obligations should be established.  Ghana cannot maintain its pride, self-confidence and respect until it resolves and works to feed, house and clothe itself while it schools and keeps itself healthy.  We should learn from the achievements of the Acheampong regime while we eschew its follies.