Addressing economic challenges: New govt needs solid team — Experts

Four analysts say the incoming President, John Dramani Mahama, will need to assemble a “solid team capable of addressing the country’s economic challenges” to set the right governance tone for his second presidency, especially in terms of trust.

Professor of Finance at the University of Ghana Business School, Prof. Godfred Bokpin, and the Dean of the University of Cape Coast School of Business, John Gartchie Gatsi, said the enormity of the work ahead required immediate action in government.

The two said a capable team would enable the new government to implement policies to respond positively and directly to the concerns of Ghanaians after COVID-19, the Russia-Ukraine war and the debt exchange programme exacerbated the existing vulnerabilities in the country.

The Director of the Democracy Project, Dr John Osae-Kwapong, on the other hand, said fulfilling the first 120 social contracts within the specified time would set the right governance tone for Mr Mahama’s second presidency, while the Head of the Political Science Department of the University of Ghana, Professor Seidu Alidu, said the incoming government would have to be magnanimous with power and bring governance to the level of the ordinary Ghanaian.

Sharing their separate perspectives about their expectations of the next President and his government, the four underscored the need to stabilise the system and improve conditions in the immediate future to set the stage for the promised better living conditions.

“As I have regularly pointed out, the Afrobarometer survey shows that trust in key institutions, including the presidency, is at an all-time low. It will take steps like this to rebuild trust,” Dr Osae-Kwapong said.

He said Ghanaians had delivered their verdict by voting massively for the NDC, stressing that it was now time for the post-election phase of the verdict where the public expected the incoming government to address very specific important priorities. 

Context

The NDC promised several things during the election campaign.

One of them was the “Mahama’s First 120 Days Social Contract with The People of Ghana” document, which outlines what the party will do in the first 120 days in power. 

Fulfilling promises

Dr Osae-Kwapong said broadly speaking, Ghanaians expected that the President-elect would fulfil his campaign promises throughout his presidency.

He explained that fulfilling all elements of the social contract within the specified time would rebuild trust for the political class.

He conceded, however, that economic challenges remained a major issue.

“This means the new government must take immediate active steps to roll out key policy interventions to place the economy on a path of full recovery.

“The signature 24-hour Economy promised during the campaign must be a high policy priority,” he said.

In addition to that, Dr Osae-Kwapong said the promised changes to the tax regime must be the second policy priority.

Fighting corruption

The political scientist said the incoming President must also tackle corruption in the government.

He said Ghanaians expected to see post-regime accountability by ensuring that the outgoing government gave a full account of how it handled the public purse.

Dr Osae-Kwapong said Ghanaians also expected in-regime accountability by putting in measures to ensure that the incoming government did not become a victim of the very things it highlighted in opposition.

“In this regard, the code of conduct for public officers which was promised during the campaign must be a top governance priority and immediately passed as new appointees take up their positions,” he stated. 

Honesty

Prof. Alidu advised the incoming government and its appointees to be honest and transparent with the people.

He stressed the need for the government to introduce social intervention policies that resonated with the people for which they elected the party, especially its social contract document.

Prof. Alidu urged it was also important to engage in stakeholder consultations with civil society organisations, the diplomatic community, the opposition political parties and other organisations such as teachers and industry players, among others.

The economists maintained that the results were the price to be paid by the incumbent government for presiding over such a high level of cost-of-living crises, poverty and policy failures.

Prof. Bokpin stated that given the President-elect's one-term mandate, the new government could not afford a honeymoon period.

He said the President-elect should use the jubilation and celebration period to start working just as his counterparts in the United States had done.

“The President-elect can only demand patience from Ghanaians and not honeymoon. The situation of the citizens has worsened from all the indicators in the last 10 years.

“Data available from November 2023 showed that locally produced inflation became higher than imported inflation, indicating a high cost of doing business and there was no cushion anymore because COVID-19 and the debt exchange programme did not only affect the government but households as well,” he said.

Mr Mahama won the December 7 polls with a landslide margin, with the NDC claiming a comfortable majority in Parliament as well.

Prof. Bokpin said the results of the elections indicated that Ghanaians were currently running out of patience and that there was an urgent need for the country to save its democracy from itself.

Tame food inflation

He urged the President-elect to start putting in place mechanisms to implement the proposed 24-hour Economy initiative by clearly detailing the critical success factors and key performance indicators.

“When you are outside, there are things you may promise on the campaign platforms but the situation may be different when you take over. But what I prefer the President-elect to focus on is food security,” he stated.

He said the only approach to impact the lives of Ghanaians within the shortest possible time was within their mouths because the average household in the country spent close to 44 per cent of household expenditure on food.

Massive confidence

Prof. Gatsi, who is also a Professor of Finance, stated that the massive confidence reposed in the President-elect and the NDC in Parliament meant that Ghanaians wanted a total reset of the economy.

“The President-elect in his 120 days’ social contract has promised to organise a stakeholders’ forum on the economy and other 25-point initiatives to turn things around.

“He has already outlined what should be done at what point from the elimination of e-levy, betting tax, COVID-19 levy, emission tax, time of engagement with International Monetary Fund (IMF), among others,” he said.

Do not rush

Instead of rushing, Prof. Gatsi said the President-elect must deploy the correct approach of experience, understanding and appreciation of the issues at hand to be able to deal with the situation.

He said there was the need to start flagship programmes such as the 24-hour Economy initiative in the areas that were low-hanging, with the need for high security and to incentivise the business community.

“The President should not be triggered to start running anyhow, but rather make use of the goodwill Ghanaians have shown to him in tangible support in terms of good governance, quality delivery on infrastructure and food inflation which is now endemic.

“The President-elect must also use experience to handle projects ongoing under the outgoing government such as the Free Senior High School and Agenda 111 hospital projects,” Prof. Gatsi added.

Background

Mr Mahama has been declared winner of the December 7 presidential election.

He polled 6,328,397, representing 56.55 per cent of the votes, while his main contender, the Vice-President and presidential candidate of the governing New Patriotic Party, Dr Mahamudu Bawumia, secured 4,657,304, representing 41.61 per cent of the votes.