Sometime last week, the National Chairman of the NDC Dr. Kwabena Adjei asked activists of the New Patriotic Party (NPP) to refrain from covert activities designed to sow seeds of discord within the rank and file of the other political parties- especially the NDC. I am sure he was talking about the numerous nefarious activities that have of late been linked to the NPP. The distribution and pasting of posters of the former first lady Nana Konadu Agyeman Rawlings is a typical example of political mischief to say the least. If Mr. William Kwaku Afrifa had not been caught in the very act, this scandalous mischief would have been attributed to the NDC “foot soldiers’’. Mr. Afrifa upon police investigation admitted and indicated that he picked the posters from the car of one Michael Boateng a presenter on FM station.

This reminds us of series of insults against political opponents on Hi-FM which was vehemently criticized by Ghanaian at all levels including the President. The FM station reminds us of another shocking story of armed robbers forcing male victims to rape their female counterparts on the Kintampo-Tamale road. This story which was narrated by Amina and trumpeted by the FM station is still in court. What on earth is wrong with the FM station which seeks to go all out to discredit the present Government and the NDC party? This in my opinion is a classic example of dysfunctional opposition I still remember the protest and objections in parliament. It even led to an NPP boycott of parliament. What was the problem? The Government was about to sign an agreement with STX Construction Company, for the production of two hundred thousand (200,000) unit houses. Even when the Attorney General had justified the agreement, the resistance from the opposition was still evident. This is a typical example of an action inimical to the country’s development.

Of late major opposition parties are hitting well below the belt. Is this the result of fear? Looking at the excellent performance of Prof. Mills, the Gurus of NPP have come to realize that there is no way their party can win the 2012 election except through such dirty tricks and strategies. Indeed the NPP has an agenda; that is to make the Government unpopular, and eventually to lose focus and fail to achieve its target. Fortunately the seasoned and renowned professor with long standing experience as Vice President and two years in office as President does not very easily lose focus. He is hard working, dedicated, honest, humble, committed and unassuming. Indeed Prof. Mills is a visionary.

In 2008, barely two years ago president Mills took over (from former president Kuffour) a distressed economy controlled by reckless spending, heavy national debt, rocketing inflation, high fiscal deficit, depleted foreign reserves and rising interest rates. Corruption, drug trafficking, armed robbery and cold blooded execution of Mobilla and Ya Naa were the order of the day.

Barely two years down the lane, have we had single digit inflation-the lowest inflation of all times? (From 20.7% in 2008 to 9.34% in 2010). The eighty trillion (80 trillion) national debt, (incurred by former president Kuffour) the highest in the history of Ghana has been reduced to thirty trillion (30 trillion).by the Mills administration. Interest rate of Treasury bill has dropped from 27.96% in 2008 to 19.4% in 2010. The gross foreign reserves have increased from two billion US dollars ($2 billion) in 2008 in the NPP Government to $3.5 billion in 2010 in Mills Government. In spite of the global financial crisis the economy of Ghana is still buoyant. Thanks to the prudent policies of Prof Atta Mills. The national deficit which was 14.5% of GDP in 2008 is now 10% of GDP.

According to Mr. Zoellick (World Bank President), Ghana is one of the more open economies to foreign equity ownership in Sub-Saharan Africa. According to international statistics, Ghana’s cedi was the most preferred trade currency out of basket of twenty four (24) emerging countries. The cedi which depreciated by more than 23% in 2008 during the NPP Government has now been stabilized and appreciated in relation to the dollar.

According to the Ghana Investing Promotion Centre (GIPC) Ghana attracted three hundred and twelve (312) investment projects valued at GHc1.59 billion as against 98 investments in 2008.
Apart from the solid economy the Mills administration has made laudable stride in the reduction of maternal morbidity and mortality and in providing access to education for the girl child. The elimination of schools under trees and the school shift system is in full progress. The single spine salary system which in 2006 was too hot for Kuffour’s administration to handle has been successfully launched and is being implemented by the NDC Government led by President Mills. Mills is on his way breaking major existing records. We have the lowest inflation of all times. We have for the first time achieved the middle income status – much earlier than predicted. Well done Mr. President.

The “Better Ghana Agenda” is in full swing. Barely two years after the take over of power by the NDC Government. Job for all through National Youth Employment Program (NYEP) is being realized. Macroeconomic successes have been achieved. We need a radical paradigm shift of the mindset of the people. An attitudinal change to appreciate and contribute positively to the drive for rapid economic emancipation. In all things, Ghana has to come first. Together we should fight against abject poverty and help in the national transformation through technological, scientific and academic based industrialization.


Dr. E.K.HAYFORD
NDC-Caucus
University of Ghana-Legon

















ATTITUDINAL CHANGE AND INCREASES IN UTILITY TARIFFS: WHAT DO THEY HAVE IN COMMON?

In a previous article on “Milestone in the better Ghana Agenda we stressed the need for a paradigm shift in the minds set of the Ghanaian. As we strive towards the middle income status, we would need an attitudinal change that will appreciate and contribute positively to the drive for rapid economic emancipation. We need an attitudinal change that will support the National transformation process. The strive for technological, scientific and academic based industrialization can only be achieved and sustained within the framework of the collective effort. The call for paradigm shifts has always accompanied nation building. So is it that the first call for a paradigm shift and attitudinal change was made by Dr Kwame Nkrumah in 1957.” From now on we must change our attitudes, our minds” he said. This was part of his speech on Independence Day. An attitudinal change that will make the interest of Ghana the centre of our desires.

Coming out of hundred years of colonial rule, foreign traditions and way of life have been handed down from one generation to the other. As a result, our “I care less” attitudes do not serve the interest of Ghana; making it look as if anything about Ghana concerns the Government and not us. Until recently we were all so indifferent to giving our best when it has to do with Government ownership. Our industries suffered most because anything made in Ghana was inferior to those from Europe and elsewhere. We buy from the markets, eat, fall sick and sometimes die; yet we are the same people who sell on the pavement and along dirty gutters. That many of us throw massive volumes of plastic bags into gutters, and also build on water ways causing flooding and loss of life during the rainy seasons is inhuman and sad to say the least. That our waste products cannot be controlled is partly poor planning and poor human attitude. Somewhere in Accra, artificial water shortage is created and so hospitals have no water- because Private Operators draw water from the water hydrants to sell elsewhere. Laws and by-laws are flouted and trampled upon with impunity. Fake textile prints are smuggled into the country and valuable cocoa is smuggled outside the country with the support of some security agencies all because the interest of Ghana is not paramount in the minds set of its citizens. A citizen who robs his country of its much needed taxes is not worth being a citizen. We can enact the best laws and regulations, if the citizens have wrong attitude, the end product is chaos in dysfunctional development.

The rapid post Second World War development in Germany and Japan was possible because the same people who were ready to die for their country were the same people who were ready to contribute their strength energy and taxes for the rapid development of their country. The mindset that the interest of the country is above any individual interest had already been formed during the war. Looking over our shoulders into other developed countries, we realize that more tax and utility tariff increases are made every year with little or no resistance. The trade unions only come in when they have to agitate for pay increases. In many developed and developing countries, between 15-20% of the energy generated went into domestic use. In Ghana more than 50% of the country`s energy goes into domestic use. Can this imply willful misuse of energy in our homes? Can this be due to illegal connections? Are these some of the reasons supporting higher tariffs? The truth is that the hydropower production (of the good old days of Dr Nkrumah) with its very cheap tariffs can no longer be sustained. Production is now becoming unreliable as a result of the perennial water shortages in the Volta River reservoir at Akosombo. Of late, Burkina Faso has built a number of dams across the portion of Black and White Volta in her territorial boundaries. She therefore controls the volume of water that flows into the reservoir at Akosombo in Ghana. Similarly the Bui dam may face the same problem when completed. There is also the climate change component which makes the volume of water in our rivers unpredictable. As a result, an International report in 1990 recommended for Ghana thermal complementation. Thermal energy production has however higher production cost and so higher tariffs.

Position of Ghana
Ghana is striving hard to achieve the millennium goals Ghana is also trying hard to arrive at the middle income status by 2020. Ghana claims to be the gate way to West Africa and is trying hard to maintain the status quo. Now the question is: do the Ghanaian citizens share the aspirations of their country? Looking at the enthusiasm with which we cheered the Black Stars in South Africa, I am sure many will confess that they share the aspiration of the country. It is however one thing saying and another thing doing it. Sharing the aspirations would mean using your mind, strength energy and taxes to push Ghana forward. This problem can be compared to a car in motion. The car is Ghana and the passengers are the Ghanaians. The President Prof. John Evans Atta Mills is the driver. With the consent of the passengers there is acceleration. As he accelerates, the passengers resist by swerving backwards. They are virtually resisting, even though they agree to the increase in speed. This phenomenon is called inertia in Physics. Are we behaving that way? Are we unconsciously resisting what we want? This is similar to the experiences of Paul in his Epistle to the Corinthians. : “What I do not want, that I do, and what I want That I do not”. As long as we resist every effort to move the country forward, we will remain where we are for all the years. Certainly no true Ghanaian will want it that way.

The other side of the coin
The customers complain of poor quality of service delivery by the Electricity Company of Ghana (ECG). Power supply is extremely unpredictable. In some areas lights go off every other day. The lights go on and off as often as the company would like to have it. This scenario, more often than not damages our house equipment like TV, refrigerators, electric cookers, funs and bulbs-name them. You can imagine sitting comfortably with a bottle of beer listening to the major news at seven. Suddenly the lights go off and you have to sleep without light. The next day in the evening the light is there but the TV does not function. Many house hold gadgets have spoilt as a result of this uncontrolled on and off processes. The people complain of inefficiency, mismanagement and corruption as the order of the day at the ECG for which tariff increases cannot be supported.

On the other hand the ECG complains about theft of cables and illegal connections. As far as illegal connections are concerned, the ECG paid GHc53,452.56 in seven months to informants in the Greater Accra Region alone. Besides, high cost of thermal energy, old and outmoded equipment all contribute significantly to high tariffs. The ECG also advised customers to develop the principle to conserve and save energy. Purchasing of energy efficient gadgets would help customers to save energy and so cost of electricity consumption. General observation is that gadgets that were not in use are kept on. Both TV and radios are swished on even when no one is listening or watching. Preferences for secondhand gadgets are high even though these tend to consume high units of energy and so higher cost. The capacity to generate energy for industrial, commercial and domestic use is in serious crisis because of the failure of some mining companies, industries, ministries, departments and agencies (MDAs) to pay what they owe the Volta River Authority (VRA). The VRA claims that it is compelled to sell power cheaper than the production cost because the amount collected from customers who pay their bills regularly is not enough to sustain its operations. This has led to financial crisis. According to the Head of the Public Relations at the VRA, Mrs. Gertrude Koomson, the VRA looses 50% of its production cost and views inflation and increases in crude oil prices as other factors contributing to huge loses. The Ministries departments and agencies (MDAs) owe the VRA GHc90 million while some distressed mining companies owe GHc15 million. The inability of customers to honour their financial obligation pushes the VRA more and more for tariff increases to sustain its operations. She added that the company spends between $30 million and $40 million a month to procure crude oil but is not able to generate enough to cover oil demand and other financial obligations.

Besides the equipment from the 1960s are obsolete and needed to be replaced. Projections show that the consumer rate of ECG is growing at 7% per year which suggest that the capacity of the equipment should double within the next 10 years to prevent a total break down of the system. The situation had gone so bad, that equipment which needed to be used as reserve to support others when there was fault were being used at the same time. In addition to the low tariffs, the company has other challenges; namely the failure of some two million consumers to pay their bills. The illegal connection of electricity engaged in by the African Automobile Limited in Accra as well as other business entities is a classic example. Illegal connections and power by-pass which accounted for about 13% of power sold out, in addition to 12% loss through “technical losses” has massive crippling effect.

The Bui Hydro Electric Power Project in the Brong Ahafo Region is in an advanced stage The project is expected to generate 400 megawatts (MW) of energy to supplement the country`s existing hydro and thermal supplies. Currently the country generates 2,000 MW of power from hydro and thermal sources which according to experts is far below the 5,000 MW needed in the country. In June this year, experts in the energy sector in West African sub-region, met to deliberate on how to strengthen public private partnership. During the meeting, the director of the United Nations Economic Commission for Africa responsible for the West Africa sub region, said shortage of electricity had severely tested the economies of the sub-region and continues to hamper the development of West Africa.

For this reason the Ghana Grid Company Limited (GRIDCo) responsible for power transmission in the country, has drawn up a five year capital investment program. This will include construction of transmission lines and substations and the installation of transformers and other sub-station equipment at an estimated cost of US$1 billion. In addition the Government has embarked on a $300 million rural electrification project in the three northern regions. In this project, 38 communities in the Pusiga constituency in the Upper Region and 20 communities from Sissala East in the Upper West Region are earmarked for connection. This is part of the decision to transform the Savannah zone into a vibrant and well functioning part of the country. In another electrification project, the Government has secured a loan of $520 million to undertake a massive rural electrification project across the length and breath of the country. More than 2,200 rural communities are expected to benefit from the project. 31 communities in the Amansie West District in the Ashanti Region have been selected to be connected to the national grid this year. The communities include Manso-Domi, Beposo, Kwakokrom, Asuadai, Besease, Kobeda, Bonsaaso, Tontokrom, ApenimadiAboaboso Waterso and Wonipanidua.

Along side is the Atomic Energy for peaceful purposes, solar energy, and wind energy have to be considered. The debate on the peaceful use of Atomic Energy and all other forms of energy has to continue if our long term energy requirements are to be achieved.

Dr E.K.HAYFORD
NDC Caucus
University of Ghana
Legon