PRESENTATION by abstraks

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              PRESENTATION

           BY MR. ABDEL HAMID BOUAB

AT THE NATIONAL ECONOMIC SUMMIT IN ACCRA, GHANA
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INTRODUCTION

HONORABLE MINISTERS, EXCELLENCEIS, DISTINGUISHED

PARTICIPANTS, LADIES AND GENLEMEN.



WHAT AN HONOUR AND PRIVILEGE IT IS FOR ME TO MEET

WITH SUCH DISTINGUISHED REPRESENTATIVES OF SUCH

DIVERSE GOVERNMENT ORGANIZATIONS AND INSTITUTIONS

AS WELL AS FROM THE PRIVATE SECTOR, NGOs AND OTHER

IMPORTANT NATIONAL AND INTERNATIONAL BODIES.



YOUR GATHERING HERE IS A TRUE EXPRESSION OF A

PARTNERSHIP BETWEEN THE PUBLIC AND THE PRIVATE

SECTORS.



THIS SHOULD GO A LONG WAY TOWARDS MEETING THE

OBJECTIVES OF THE NATIONAL ECONOMIC SUMMIT.
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AS YOU KNOW, THE PRUPSOE OF THIS NATIONAL ECONOMCI

SUMMIT IS TO DEVELOP A NATIONAL CENSENSUS ON POLICY

MEASURES AND PROGRAME REQUIRED FOR ACCELERATED

ECONOMIC GROWTH WITHIN THE FRAMEWORK OF GHANA

VISION-2020.



CONSISTENT WITH THIS PURPOSE. THE THEME OF MY

PRESENTATION IS, "LET’S MOVE BEYOND POLICY ADVICE

TO GENERAL CONSENSUS FOR A PROGRAMME OF ACTION.”



1. FIRST OF ALL, LET ME BE VERY CLEAR. NO ONE

PRESENT HERE WOULD SUPPORT RETURNING TO THE

CONDITIONS PRIOR TO THE INTRODUCTION OF THE

ECONOMIC RECOVERY PROGRAMME IN 1983. CONDITIONS

THEN WERE UNACCEPTABLE.
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THE INTRODUCTION OF THE ECONOMIC REFORM

PROGRAMME        IN    1983       HAD       THREE     MAIN

COMPONENTS:                STABLIZATION,               AND

LIBERALIZATION.

1.   STABILIZATION, WAS ACHIEVED THROUGH

     STABLISHING       TARGETS          FOR     REVENUE

     GENERATION,           EXPENDITURE          CEILINGS,

     MONETARY TARGETS, AND SO ON;

2.   REHABILITATION,          WAS    PLANNED    FOR     THE

     IMPROVEMENT      OF      THE    DECAYING       PHYSICAL

     INFRASTRUCTURE, AND IMPROVING THE FINANCIAL

     INGRASTRUCTURE.

3.   LIBERALIZATION,       TOOK     PLACE   THROUGH     THE

     REMOVAL OF PRICE, TRADE, AND EXCHANGE RATE

     CONTROLS.

     STICKING WITH THE REFORMS WAS NECESSARY NOT

     ONLY TO MAINTAIN DONOR SUPPORT, BUT ALSO TO

     NURTURE     CONFIDENCE         AMONGST     DOMESTIC

     INVESTORS AND TO GENERATE THE NECESSARY

     PRIVATE INVESTMENT.
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2. WHAT HAPPENED AFTER 1983?

OVERALL, GDP GROWTH RATES HAVE BEEN CONSISTENTLY

POSITIVE SINCE 1983. THE SERVICE SECTOR HAS EMERGED AS

THE LARGEST SECTOR IN THE ECONOMY, AS COMPARED

WITH THE DIRECT PRODUCTION ACTIVITY OF AGRICULTURE

AND MINING.



THE 1983 ECONOMIC RECOVERY PROGRAMME (ERP),       HAS

ACHIEVED   SOME   SUCCESSES    IN   RESTORING   MACRO-

ECONOMIC STABILITY.



THE FACT REMAINS, HOWEVER, THAT THOSE ACHIEVEMENTS

WILL NOT BE SUFFICIENT TO MEET THE GOVERNMENT’S

GHANA VISION-2029 TARGETS.     ALTHOUGH GROWTH WAS

ACHIEVED, IT WAS NOT NECESSAIRLY FELT IN THE EVERY

DAY LIVES OF THE PEOPLE.
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AND I DON’T NEED TO REMIND THOSE PRESENT THAT

ECONOMIC GROWTH AND HUMAN DEVELOPMENT ARE NOT

LINKED AUTOMATICALLY.

MAINTAINING THE PRESENT POLICY FRAMEWORK WILL ONLY

ACHIEVE ONE-HALF OF WHAT IS REQUIRED.        AS OTHERS

HAVE STATED, TO MEET ITS TARGETS, GHANA WILL HAVE TO

WORK TWICE AS HARD.



OVERALL, THE GOVERNMENT FULLY RECOGNIZES THAT A

SHIFT IN THE POLICY FRAMEWORK IS REQUIRED. THAT IS

THE VERY REASON FOR THIS NATIONAL ECONOMIC SUMMIT.

LET US MOVE ON AND NOT DWELL FURTHER ON THE PAST! I

JUST WANTED TO EMPHASIZE THAT GOING BACKWARDS IS

NOT AN ACCEPTABLE OPTION!



4.    LET US NOW LOOK TOWARDS THE FUTURE

THE GOVERNMENT OF GHANA IS EMBARKING UPON A

CONCEPTUAL FRAMEWORK TO REGAIN MACRO-ECONOMIC

STABILITY,     AND   PROMOTE   SUSTAINABLE   ECONOMIC

GROWTH WITHIN THE LONG-TERM PERSPECTIVE OF GHANA

VISION-2020.
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OVER THE PAST EIGHTEEN MONTHS, AS OTHER SPEAKERS

HAVE    NOTED,    THE GOVERNMENT HAS HELD A

NUMBER OF FORAS, WORKSHOPS AND CONFERENCES.



BASED ON THIS VALUABLE PRACTICAL EXPERIENCE AND

INPUT FROM THESE CONFERENCES, THE GOVERNMENT HAS

GAINED INSIGHTS TO ENABLE IT TO IMPLEMET A CONSISTENT

STRATEGY    TO    REGAIN        MACRO-ECONOMIC     STABILITY.

PROMOTE THE LIBERALIZATION PROCESS AND PRIVATE

SECTOR DEVELOPMENT WITH A VIEW TO ACHIEVING

SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT.



THE    POLICY    MEASURES       AND   REFORM   PROGRAMMES

DESIGNED BY THE GOVERNMENT WITHINTHESE FORAS

SHOULD LARGELY ACHIEVE THESE OBJECTIVES.



THE PRESIDENT’S ADDRESS YESTERDAY MORNING HAS

PROVIDED THE POLICY AND REFORM FRAMEOWRK, WHICH IS

COMPREHENSIVE      AND     WHICH,     WITHIN   A   NATIONAL

CONCENSUS, WILL EMBARK THE COUNTRY ON A COURSE OF

RECOVERY AND ECONOMIC GROWTH.
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FOR MY PART, I WISH TO ADDRESS THE FRAMEWORK IN

WHICH THESE REFORMS SHOULD BE PUT IN PLACE TO

ENSURE   MAXIMUM     SUCCESS.   THE   PRIORITIES   AND

SEQUENCING IN INTRODUCING AND IMPLEMENTING THESE

NEW STRATEGIES WILL BE OF CRITICAL IMPORTANCE TO

THEIR SUCCESS.   THEY WILL GAIN FURTHER IN THEIR

EFFICIENCY AND EFFECTIVENESS IF INTRODUCED WITHIN

THE FOLLOWING PARAMETERS:



1ST. A COMPREHENSIVE CRITICAL MASS OF POLICIES,

REGULATIONS AND PROGRAMMES IS NEEDED TO ADDRESS

LARGE    FINANCIAL   IMBALANCES   AND   DEEP-ROOTED

BOTTLENECKS.



THE ADJUSTMENT EFFORTS GHANA UNDERTOOK IN THE

EARLY 1980’S SUCCEEDED ONLY PARTIALLY, BECAUSE THEY

TENDED TO BE PIECEMEAL.
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ACCORDINGLY,      MORE       WIDE-RANGING       STRUCTURAL

REFORMS, AIMED AT REDRESSING THE FISCAL POSITION AND

ENHANCING MONETARY POLICY, NEED TO BE PUT IN PALCE

WITHIN   THE   GOVERNMENT’S        PROPOSED    MEDIUM-TERM

STRATEGY.



IN PARTICULAR, THE BURDEN OF FISCAL ADJUSTMENT

SHOULD REST ON BOTH THE REVENUE AND EXPENDITURE

SIDES    TO   BRING   ABOUT    A    MORE      DURABLE   AND

SUSTAINABLE IMPROVEMENT IN THE FISCAL POSITION.



AT THE SAME TIME, THE REFORM OF THE FINANCIAL SECTOR

AND THE MOVE TO INDIRECT INSTRUMENTS OF MONETARY

CONTROL SHOULD ENABLE THE MONETARY AUTHORITIES TO

MOBILIZE FINANCIAL SAVINGS MORE EFFECTIVELY WHILE

FOSTERING MORE EFFICIENT USE OF CREDIT.
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2ND.    REFORMS MUST BE THOROUGHLY PREPARED TO

ACHIEVE GOVERNMENT OBJECTIVES.



HERE,      THE    ESTBALISHMENT   OF   THE   “NATIONAL

INSTITUTIONAL RENEWAL PROGRAMME (NIPR)” WOULD

PROVIDE    THE     NECESSARY   FRAMEWORK       FOR   THE

INTRODUCTION OF REFORMS WITH: ADEQUATE PREPARATION

AND GREATER EFFECTIVENESS AND SUCCESS.



3RD. THE PROPER SEQUENCING OF REFORMS WILL HELP

ACHIEVE THE DESIRED OBJECTIVES IN AN ORDERLY

MANNER.

HERE, ALSO, DOMESTIC FINANCIAL POLICIES AND EXCHANGE

RATE ADJUSTMENTS SHOULD BE SOUGHT TO STRENGTHEN

GHANA’S EXTERNAL SECTOR POSITION AS A PREREQUISITE

TO LIBERALIZING THE TRADE REGIME. A PROGRESSIVE AND

SEQUENCED        POLICY   OF   DECONTROLLING     PRICES,

LIBERALIZING THE MARKET SYSTEM AND REFORMING THE

INVESTMENT INCENTIVES SHOULD SUCCEED IN MAKING THE

DOMESTIC AND EXPORT MARKETS MORE COMPETITIVE.
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4TH. THE PROMPT ADAPTATION OF POLICIES TO ADDRESS

ADVERSE EXOGENOUS DEVELOPMENT IS ESSENTIAL.



GHANA’S PROBLEMS STEMMED, IN PART, FROM THE RAPID

EXPANSION OF GOVENRMENT EXPENDITURE IN RESPONSE TO

THE BOOM IN COMMODITIES EXPORTS IN THE 1980’s and THE

FAILURE TO ADJUST POLICIES IN A TIMELY MANNER WHEN

THOSE PRICES DROPPED IN THE FIRST HALF OF THE 1980’s

THE GOVERNMENT’S NEW STRATEGY SHOULD REMAIN

FLEXIBLE AND ADAPTABLE TO BE ABLE TO DEAL WITH

EXTERNALLY GENERATED FACTORS.



5TH. SUSTAINED AND CONTINUOUS ADJUSTMENT AND

REFORM   ARE   KEY   TO    LIMITING   THE   COSTS   AND

MAXIMIZING THE BENEFITS OF POLICIES.



THIS WILL AVOID THE PITFALLS OF AN “ON AGAIN, OFF

AGAIN” APPROACH, WHICH WOULD ENTAIL NOT ONLY AN
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EROSION OF EARLIER PROGRESS DURING THE “OFF” PERIODS,

BUT ALSO A HIGH START-UP COST OF REGAINING THE LOST

MOMENTUM.



FURTHERMORE, APART FROM THE DIRECT BENEFITS OF

THESE MORE STEADY POLICIES, GHANA WILL GREATLY

BENEFIT FROM THE ADDED CONFIDENCE THAT CONTINUITY

WOULD    INSTILL   IN   BOTH    DOMESTIC    AND   FOREIGN

INVESTORS.



6TH.    AN   OUTWARD-ORIENTED      AND     MARKET-BASED

STRATEGY     WOULD      HELP   PROMOTE     STABILITY   AND

GROWTH.



THE LIBERALIZATION OF THE ECONOMY, COMBINED WITH AN

APPROPRIATE EXCHANGE RATE POLICY AND UNDERPINNED

BY SUITABLE FINANCIAL POLICIES, WOULD CONTRIBUTE TO

GROWTH IN THE TRADABLE GOODS SECTOR.
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A SUBSTANTIAL EXPANSION OF NON-TRADITIONAL EXPORTS

WILL ALSO CONTRIBUTE TO THE OVERALL GROWTH OF THE

ECONOMY AND TO THE STRENGTHENING OF THE BALANCE

OF PAYMENTS POSITION.



IN     ADDITION,   THE   GROWTH   OF     THE   ECONOMY,   BY

EXPANDING THE TAX BASE, WOULD ALSO FACILITATE THE

IMPROVEMENT OF THE BUDGET POSITION.



IN TURN, THIS WOULD ENABLE THE MONETARY AUTHORITIES

TO SHIFT CREDIT RESOURCES TO INCREASINGLY SUPPORT

THE PRIVATE SECTOR WHILE REDUCING INFLATION.              THE

OPENNESS OF THE ECONOMY, BY FOSTERING DOMESTIC

COMPETITION        AND   EFFICIENCIES,    WOULD    HELP    IN

ENHANCING PRICE STABILITY.




7TH.    THE PACE OF STABILIZATION POLICIES AND THE

REFORM PROCESS SHOULD BE TAILORED TO THE SPECIFIC

CIRCUMSTANCES OF THE COUNTRY.



IN PARTICULAR, IND ETERMINING THE PACE OF REFORMS,

THE GOVERNMENT SHOULD STRIKE A CAREFUL BALANCE
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WITH PUBLIC ACCEPTABILITY TO AVOID SOCIAL TENSIONS

WHICH COULD DISRUPT THE REFORM PROCESS.



8TH. CONSISTENT WITH THE PRECEDING POINT, THE

SUSTAINABILITY    OF   REFORMS       AND      ADJUSTMENT

PROCESSES REQUIRES PUBLIC SUPPORT.



I AM CONVINCED THAT THE CONSENSUS EMERGING FROM

THE    CURRENT      NATIONAL        ECONOMIC      SUMMIT

DELIBERATIONS,   TOGETHER    WITH    THE    GOVERNMENT’S

EFFORTS TO PROVIDE MORE INFORMATION ON ECONOMIC

VARIABLES   AND      DEVELOPMENTS,         WILL   GREATLY

CONTRIBUTE TO ACCELERATING THE PACE OF REFORMS IN

THE FIRST HALF OF THE NEXT YEAR. CONTINUOUS PUBLIC

AND   STAKEHOLDER      SUPPORT      MUST     BE   SECURED

THROUGHOUT THE REFORM PROCESS.



FURTHERMORE, THE “EIRP” FRAMEWORK WILL ENSURE THAT

THE ECONOMIC SUMMIT “PROGRAMME OF ACTION” WHICH

WILL EMERGE FROM YOUR DELIBERATIONS WILL ENHANCE

THE   GOVERNMENT’S     CONCEPTUAL     AND     ANALYTICAL

POLICIES AND AMELIORATE THE SOCIAL CONDITIONS.
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9TH.   AN EFFECTIVE ADMINISTRATION IS ESSENTIAL TO

THE    PREPARATION    AND    IMPLEMENTATION    OF   THE

COMPREHENSIVE REFORM PROCESS.



GHANA HAS A HIGHLY COMPETENT AND EFFECTIVE CIVIL

SERVICE THAT WILL BE ABLE TO IMPLEMENT THE REQUISITE

REFORMS.     THIS IS PARTICULARLY APPARENT IN THE

MOBILIZATION OF DOMESTIC REVENUE AND CONTROL OF

GOVERNMENT EXPENDITURE.



THE RFORM OF THE FINANCIAL SECTOR, TOGETHER WITH AN

EFFECTIVE POLICY AND INSTITUTIONAL FRAMEWORK FOR

THE MOBILIZATION OFHOUSEHOLD SAVINGS AND FOR




GREATER TRANSPARENCY AND ACCOUNTABILITY, WOULD

CONTRIBUTE     TO    ENHANCING    THE   GOVERNMENT’S

CAPABILITIES   IN   ROMOTING   SUSTAINABLE    ECONOMIC

GROWTH.
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CONCLUSION


IN CONCLUSION, HONORABLE MINISTERS, EXCELLENCIES

DISTINGUISHED PARTICIPANTS, LADIES AND GENTLEMEN.



THOSE ARE A FEW IDEAS WHICH MAY ENABLE US TO

EMBARK    UPON   A   PROCESS   OF   CONTINUED   REFORM,

LIBERALIZATION AND ADJUSTMENT OF THE ECONOMY IN

GHANA.



AS I MENTIONED EARLIER, THIS FRAMEWORK SHOULD BE

PERCEIVED IN A FLEXIBLE AND SEQUENTIAL APPROACH. IT

WILL AFFORD THE COUNTRY TO REGAIN MACRO-ECONOMIC

STABILITY, STRENGTHEN THE ROLE OF THE PRIVATE SECTOR,

AND ACHIEVE SUSTAINABLE ECONOMIC GROWTH.



LET US, THEREFORE, CONTINUE, BY WORKING TOGETHER

THROUGH CONSENSUS, IN AN UNWAVERING THE FOCUSED

MANNER.
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WE AT THE UNITED NATIONS STAND READY TO ASSIST IN

THESE       ENDEAVOURS          AND,   PARTICULARLY,      IN

STRENGTHENING THE MACRO-ECONOMIC FRAMEWORK, AND

ASSISTING IN THE REFORM OF THE FINANCIAL SECTOR AND

THE MOBILIZATION OF HOUSEHOLD SAVINGS.



WE WOULD ALSO PROVIDE THE NECESSARY SUPPORT IN

ACHIEVING INCREASED TRNASPARENCY, PREDICTABILITY,

PARTICIPATION AND ACCOUNTABILITY IN THE NATIONAL

DEVELOPMENT PROCESS.



HONORABLE     MINISTERS,    EXCELLENCIES,   DISTINGUISHED

PARTICIPANTS, LADIES AND GENTLEMEN, I WOULD LIKE TO

EXPRESS MY DEEPEST GRATITUDE TO THE GOVERNMENT

AND PEOPLE OF GHANA FOR PROVIDING THIS OPPORTUNITY

FOR   THE UNITED    NATIONS       TO PARTICIPATE   IN   THIS

NATIONAL ECONOMIC SUMMIT AND TO SHARE OUR VIEWS

WITH YOU.



THANK YOU.
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