Domestication, answer to dollarisation of economy — Dr Herbert Lartey

The Chairman and Leader of the Great Consolidated Popular Party, Dr Henry Herbert Lartey, has said “domestication” is the answer to the dollarisation of the Ghanaian economy.

He said if Ghanaians “eat what they grow and grow what they eat, as well as stockpile and export,” it will serve as a long-term solution to Ghana’s economic woes.

Speaking to the Daily Graphic, he said the economy of Ghana should be in the hands of Ghanaians.

He said it was only when the total dollar value of a country's exports exceeded the total dollar value of its imports that the country would naturally experience trade surplus. 

Ghana, according to Dr Lartey, imports almost everything. He pointed out that the long-term way of reducing inflation and thus restoring some confidence in the national currency was to produce and export.

“Ghana can earn dollars, euros, pound sterling and other currencies (foreign reserves) by producing,” he stated.

He added that when a country's trade deficit increased, the value of that country's currency depreciated against the currency of its trading partners.

“As we have consistently imported more goods over the years than we exported to our trading partners, the cedi has depreciated against the dollar and other currencies,” he stated.

He insisted that Ghana had to earn more from exports especially by value addition to products such as oranges, pineapples, pawpaw, and mangoes, among others.

“Ghana cannot rely on cocoa alone (for a lifetime) at the expense of other products,” he stated.

In the view of Dr Lartey, Ghana should encourage the large production of rice, maize, palm oil, rubber and sugarcane for the production of sugar.

“If we don't promote domestication to change our current import orientation to export orientation, then the light at the end of the tunnel will continue to elude us,” the GCPP leader stated. He added, “We have to pursue Ghana economic empowerment through domestication.”