7 Recommendations Dr Bawumia made in 2014 to the NDC Government on Restoring the Value of the Cedi

Jerome Brunson shares key takeaways from Dr Bawumia's Central University adress in 2014

Over 10 years ago I was at Central University College to cover Dr Bawumia's famous lecture on Restoring the Value of the . I've just reviewed my physical copy of the lecture and these are the seven recommendations Dr Bawumia made to the then government.

  1. Admit there is a crisis. Ensure policy credibility by resisting the temptation to make new promises and commitments for new programs.
  2. Plugging leakages through competitive tendering, issuing national IDs & street addresses, dealing with , biometric payrolls.
  3. Strengthen legislation to punish fiscal excesses. Fiscal Responsibility Act should have a bigger bite.
  4. Regular reporting by the BoG. Appearance of BoG governor to parliamentary finance committee. Aim is to shield the BoG from the “pressure of politicians”.
  5. Reduce taxes, especially import tariffs. He asked that the import-tariff regime should be re-engineered to boost production and exports.
  6. Significantly cut down on borrowing. He was specifically against an upcoming Eurobond subscription of $1bn because of high int rates.
  7. Adoption of a currency board on the condition that govt adopts strict fiscal discipline. Suggests a monetary union like the CFA.
  8. (Pardon Me) Reverse the then directive of BoG to force the conversion of foreign exchange withdrawals to cedis unless for travel.

Four major takeaways here:

  1. He implemented parts of his #2 recommendation i.e. national ID & address.
  2. Fiscal & monetary looseness got worse under his govt.
  3. His campaign still relies on a lot of the recommendations he made in this lecture , and
  4. He's not really a fan of the industrial policy, financial repression, export-led approach to economic development as embraced by the East Asians. The East Asian models he admires are Hong Kong & Singapore so more financialization & services-led growth.

Jerome Brunson

Jerome Brunson is an Economist, Finance & Political Risk Analyst with a focus on Ghana. He is the Founder & Editor of CediTalk Ghana

Leave a Reply

Your email address will not be published.