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The New Patriotic Party (NPP), the largest opposition party in the country, on Thursday, January 14, held a News Conference in Accra, to critically review President Mills� performance after one year in Office and posited that the one year rule of the Professor Mills� NDC, can be captured in one simple phrase: A CATALOGUE OF FAILED PROMISES. Below is a reproduction of the full statement issued by the NPP at the press conference. 2009 IN RETROSPECT: A CATALOGUE OF FAILED PROMISES NPP INTERFACE WITH MEDIA � JANUARY 2010 Good morning ladies and gentlemen of the media. We have invited you here to join us in evaluating the performance of the NDC administration under His Excellency Professor John Evans Atta Mills one year after the swearing-in. The aim is to appraise commissions and omissions and to help reform policies and programs where required towards the collective good of this country. ELECTIONS AND SWEARING-IN After both the first round and second round of voting in December 2008 results in the Presidential elections were still inconclusive and tension was being heightened by the deliberate peddling of falsehood and incitement to violence. The vote in Tain settled who the majority of Ghanaian voters wanted to preside over governance. The verdict, even though by the slimmest of margins, went to Professor Mills and the NDC. That slim margin of victory is unprecedented in the political history of Ghana, in Africa and, perhaps, the entire world. The management of the handing over via the Transitional Team however left much to be desired and rather unfortunately got this Fifth term of the Fourth Republic to start off in acrimony. Accusations and counteraccusations flew about and poisoned the atmosphere. Some of the incidents were understandable given the zeal, posturing and commitment displayed by various personalities during the electioneering campaigns and the elections. Many, however, were avoidable and inexcusable. It certainly must be one area that the nation must look at and reform, to enable the outgoing administration to peacefully exit and the incoming government to smoothly settle into the saddle. A new Parliament was sworn-in and a new Speaker, the first Lady Speaker in the history of this country was sworn-in after an election by consensus from both sides of the political divide in Parliament. That certainly marked a return to convention and a departure from the rather bizarre incident which marred the election of the former Speaker. At that time a contest ensued when the then Minority nominated another person to contest the nomination from the then Majority. Madam Speaker, thus far, has proved that she deserves the honour bequeathed on her. One could only hope that she would continue on the path of impartiality which has, to a very large extent, been her pursuit. Not too long after the inauguration of the new Parliament, Professor J.E.A. Mills was sworn-in as the fifth President albeit the third person to lead the Fourth Republic. VEHICLE SNATCHING AND DISMISSALS In the President�s inaugural address to the nation he made certain bold statements, pledges to this nation and it is important to flash back and reflect. The President was very loud when he said �As I have always said, I would be President for all Ghanaians, whether they voted for me or not and irrespective of their political persuasion and the parts of the country that they come from�. That clearly is a noble intent but significantly even before the echo in that declaration could peter out members and activists of the ruling party had descended and appropriated to themselves the manning of lorry parks, public toilets from suspected supporters and sympathizers of other political parties, but especially those of the NPP. Many were assaulted and battered and it appeared the President turned a blind eye and a deaf ear, to the protestations and the groaning of the victims. Not a good beginning for �the President for all Ghanaians�. We need to remind ourselves of dismissals which have been effected on many public officers since January 7, 2009 during the Transition period when NADMO officials including but in particular its Chief Executive as well as others who were handed dismissal letters by persons who were non-ministers but who purported to be acting on behalf of the President. The other arbitrary dismissals involved the Heads of School Feeding Programme, the National Identification Authority, the National Health Insurance Authority and many other departments and agencies in the public service. LOYALTY TO NDC, LOYALTY TO STATE The President in his inaugural address �(urged) Members of the Judiciary, the security and public services to be loyal and committed to�our dear nation�. One thought that loyalty to the nation or state is completely different from loyalty to a political party which finds itself in government. It is for this reason why one finds it strange that the President, himself as Associate Professor of law should now openly canvass the position that public and civil servants who do not agree with the ruling NDC government shall have to leave their positions. Nothing could be more dangerous to our democracy than to equate the state with government. Whereas as per Article 3(1) the Constitution disables Parliament from enacting a law to establish a one-party State, clause 2 of same article prevents any person including the president from suppressing or seeking to suppress the lawful political activity of any other person or class of persons. What is more pitiable is that the same President who pledges to be father of all Ghanaians has directed his political appointees to give special attention to members of the NDC. Public and Civil Servants are required to be loyal to the State. They are required, in the performance of their duties, to demonstrate neutrality and impartiality; they are not required to demonstrate loyalty to a ruling party! It is however good that the President has provided us with an insight into his perspectives of good governance. To President Mills �if you are not with us, you are against us�. This principle undoubtedly has informed the many dismissals from office which this nation has witnessed since January 7, 2009. These commissions are certainly at variance with the assurances of Professor Mills at his swearing-in: �we intend to pursue a consensus driven agenda�. BRUTALITIES, MURDERS AND IMPUNITY The President did pledge to the nation on January 7, 2009: �I will heal wounds and strive to ensure the unity of our country�. Again, one regrettably observes rather painfully that far from healing old wounds, new wounds have been opened under the watch of President Mills. The case of Appiah Stadium who was assaulted and was bundled in his own car by known NDC operatives and whose car was set ablaze by the same gang is well documented; the case involving the gruesome murders of three traders and workers in the Agbogbloshie market � Alhassan Fuseini from Tamale; Soale from Yendi and Sule J.Y from Tolon by persons close to the NDC including one Sule, Sahana Mohammed Ayatu, Awal Voulina Naa, Sule Nabiya, Abdalla Say and Abdalla Rasta cannot be forgotten. This nation is still waiting on the President to heal these wounds. The NDC has written in their manifesto that they will �ensure the prosecution of the persons found to be responsible for the murder in police custody of Alhaji Issah Mobila, the Northern Regional Chairman of the CPP in December 2004�. The NDC should also investigate the murder of Alhassan Fuseini, Soale and Sule J.Y. and the mysterious death of, Mr Salifu Ahmed Mikankan, the other young man who was assaulted in front of the BNI cells and died the following day. They are all Ghanaians. And as we speak today, four persons, Messrs Yahuza Yakubu, Mr Majeed Alhassan, Habib Adagbana, Shaibu, and Moro Gundana have been in detention in the past one year. What wrongs have they committed? The nation cannot also forget the declaration of jihad by Mr. Baba Jamal the Deputy Eastern Regional Minister which occasioned the shocking incidence of barbarism and thuggery displayed by NDC members and supporters in the run-up to and during the re-run of elections involving six polling stations at Akwatia. Severe injuries were inflicted on fifteen (15) NPP supporters and four of them were admitted to Akwatia and Asamankese hospitals. Severe damages were done to ten vehicles belonging to NPP officers and leaders including the Land Cruiser of the Minority Leader by an NDC mob at the main Akwatia Lorry Station. Other leaders whose vehicles were destroyed included Hon. Gifty Klenam, Hon. Elizabeth Agyeman, Hon. Isaac Osei, Hon. Kiston Akomeng Kissi, Hon. Yaw Osafo Maafo, Hon. Daniel Botwe and Nana Ohene Ntow were manhandled on the day of voting. The nation is yet to know of what the President who has pledged to heal wound has done or will do in respect of these cases. Certainly if Members of Parliament could be treated with such impunity and the perpetrators cannot be apprehended what assurance can the President give to ordinary Ghanaians that he is �a father to all Ghanaians�? The President pledged to the nation that in his administration �there will be no room for political vendetta�..no room for witch-hunting�.�. Not long after, the brouhaha over the issue of cars most of which had been bought and paid for by former Ministers, Deputy Ministers and other government functionaries ensued and many former functionaries had their vehicles snatched away from them even whilst they were driving these vehicles. In one particular case the Managing Director of a reputable bank was forced out of his vehicle and the vehicle taken away. The immediate-past Presidential candidate of the NPP had his private vehicle taken away from his driver on suspicion that it was a government vehicle that he had acquired. Then Kufuor�s four vehicles were withdrawn and taken away from his house even though former President Rawlings at that stage in his life as former President had not less than sixteen vehicles in his pool of vehicles. Former President Kufuor would not be allowed the use of four cars by President Mills. The Greenstreet Recommendation made no provision for cars for a former Vice-President. President Kufuor allowed then former Vice-President Mills the use of not less than two vehicles. Then the nation witnessed a contrivance when some so-called Ga Youth purportedly resolved not to allow former President to use an office facility which had been acquired for his use as office and library. President Mills�s government waded into the contrivance and took the office away from ex-President Kufuor. The Chinnery-Hesse Committee Recommendations which had duly been approved by Parliament in respect of Article 68 especially clauses (4), (5), (7) and (9) and Article 71 of the Constitution made specific proposals relating to gratuity, pension, allowances and other facilities including vehicles, house-helps and office and residential facilities and Endowment Fund. All these as per the Chinnery-Hesse Committee recommendations, even after approval by Parliament, are subject to ability to pay by the State. All that was required to have been done was for the President on the basis of ability or in-ability of the State to pay, to have engaged the potential beneficiaries on the way forward. GRATUITY & OTHER FACILITIES Today, Members of the Fourth Parliament and most Ministers, Deputy Ministers and some Article 71 office holders who served under the Fourth Parliament/President have been paid part of their gratuity. After the payment to the former MPs and Ministers what happens to former President Kufuor and ex-Vice President Aliu Mahama? What of the components of the office and residential facilities, vehicles and other prescribed privileges? What happens to the other Article 71 office holders who have thus far not been paid anything at all? The President insisted that he acted upon the recommendations of the Ishmael Yamson Committee because there was a vacuum. In other words, there was no report and hence no approval was given. It is instructive to note that both the Majority and Minority Leaders of Parliament had jointly declared before the Ishmael Yamson Committee that indeed the report came to Parliament and Parliament duly approved of it. From where comes the conclusion that there was no report which was approved? It is important to remember that when the cacophony over the Ex-gratia broke out the comments from government officials were that the recommendations were outrageous and that Kufuor was a self-seeker! Today, we are witnessing the shifting of the goal post. If Kufuor cannot be provided a house and an office facility because the nation cannot afford it, can the nation afford the two houses at the prime area of Ridge which ex-President Rawlings has been using for the past twenty odd years? President Mills therefore has to calculate rent in order for ex-President Rawlings to pay for the twenty plus years he has used the facility because the nation cannot afford residential facilities for former Presidents. Rent has to be calculated for the use of the office facility at Ridge by President Mills �the father for all Ghanaians�. What is good for the goose is equally good for the gander. PRESIDENTIAL PLEDGES- INTERNAL SECURITY The President promised the nation on his inauguration that �no Ghanaian should live in fear of armed robbery�. This pledge was against the backdrop that under the NPP people could not move around for fear of being attacked! Professor Mills had made this assertion at many places during his electioneering campaigns. The question then is whether it is true that today no Ghanaian lives in fear of armed robbery. The truth is that not long after the swearing-in of President Mills the nation witnessed an upsurge of armed robberies and vehicle-stealing. Into the middle of the year about forty vehicles were provided to the police. The police and the armed forces responded by intensifying their joint patrol duties. About two weeks ago another thirty (30) vehicles have been given to the police. Without doubt this will further strengthen the arm of the police to combat armed robberies; and the police and the armed forces must be commended for their rapid response, having regard to their contrivance in the use of the scarce and meager resources at their disposal. The statement that �no Ghanaian today lives in fear of armed robbery� is hyperbolic and a palpable untruth. The NDC led government must better resource the Ghana Police Service and the Ghana Armed Forces to enable them aggressively combat armed robbery through foot, motorbike and vehicle patrols to assure public safety. Even then it is important to state that by the end of the first year of Kufuor�s administration three hundred Peugeot cars and considerable number of motorbikes had been provided to the police. Good Governance Professor Mills has promised to pursue good governance based on the rule of law and an �open and honest government�. Noble declaration, without doubt, but then during the transition an operative of government who was not a minister issued a constitutional instrument in obvious breach of Article 58(5). That certainly was not in accordance with the rule of law and good governance. The President for the second time revised the Budgetary Estimates of the Judiciary before his Finance Minister laid it before Parliament contrary to the clear provisions of article 179(5) of the Constitution. The vigilance of the Parliamentary Committee on Judiciary averted the Presidential breach of the Constitution. President Mills, as presidential candidate criticized President Kufuor�s anti-corruption program in respect of public officers� appointees because of the requirement that only allegations of corruption/wrongdoing against public officer/appointees supported by evidence would be given attention. However, President Atta Mills in his January 7th 2010 media interface has set an even higher bar of requirement of �credible evidence� before allegations against his political appointees would be considered in answer to a question on his former Minister for Youth and Sports. Clearly and as usual, the President has reneged on a campaign promise to set a higher standard in his fight against corruption in respect of political appointees. He has moved from �evidence� per se to �credible evidence�. Whilst we agree that there is the need for evidence to support allegations of impropriety against political appointees for appropriate action; the determination of credible evidence falls within the ambit of the Judiciary. What is even worse is that, the investigative forum which dealt with the case of the ex-Minister for Youth and Sport is the office of the National Security Coordinator instead of the regular CID of the Ghana Police Service. For good measure, the President then introduced a concept of �indiscretion� to describe a situation which is clearly illegal. How can any person describe an act of misrepresenting facts in bad faith to enable another person enjoy benefits which would otherwise not accrue to that person as mere indiscretion? In the circumstances, the President has not only failed to be a better crusader against corruption than President Kufuor but has introduced double standards in the criminal jurisprudence of Ghana, to wit, that criminal acts by his appointees are acts of indiscretion but for others, prosecution before a court of competent jurisdiction. To dilate on the issue of double standards, permit me to state that there appears to a difference between the President�s political appointees and other Ghanaians in respect of the investigative institution which was employed to investigate allegations of impropriety. Furthermore, where the President�s appointee is clearly culpable, the President deprives the Judiciary of its role to pronounce on same but rather acts as a �judge in his own cause� to declare that such acts are a result of mere �indiscretion�. By so doing the President who has sworn, to among others, protect and defend the Constitution of Ghana, purports to usurp and exercise judicial power which is vested in Judiciary only. That action or pronouncement by the President is in obvious breach of Article 125(3). The commitment of the Office of the President to fight corruption and/or not condone corruption was dealt a further blow by his handling of the Mabey and Johnson Bribery affair and specifically the appointment of the Ghana High Commissioner to the Federal Republic of Nigeria even though the said High Commissioner has been mentioned in the said affair for impropriety or is it another instance of �indiscretion� by the High Commissioner to warrant his appointment? APPOINTMENT OF MINISTERS The President in accordance with Article 78 and 79 nominated Ministers and Deputy Ministers for approval by Parliament. Parliament considered the nominees at its Appointments Committee and the nation witnessed the caliber of persons entrusted with authority to join our President in managing the affairs of State over the succeeding three more years. It is unfortunate that the provision on proficiency in English language which used to be part of all the earlier Constitutions was omitted from the 1992 Constitution. It is good that the current Constitution is to be reviewed; we may have to look at this together with other eligibility criteria which will test the competence of Ministers, Deputy Ministers and Members of Parliament. The next consideration may perhaps be approving Ministers and Deputy Ministers for specific sectors so that if they do not perform to satisfaction they would then be given the sack and not be reshuffled to positions they have not been assessed in. ECONOMIC PERFORMANCE In economic management, the President has promised �a better Ghana� which will put money in the pockets of Ghanaians. Ladies and gentlemen of the media will recall that in the very early part of the year 2009, even though the President had assured in his inaugural address that he �wants to hit the ground running and therefore there will be no room for political vendetta, no room for blame game��, Ghanaians were inundated with misinformation about the state of the economy. It was said that the country�s gold reserves at the Bank of Ghana had gone missing. Later it was stated emphatically that officers of the NPP administration had stolen the reserves. Subsequently, the propaganda became the �economy was broke�, �the NPP had looted the economy�, �the economy had been mismanaged�, etc. The NDC had stated in their manifesto that �they (NPP) spent the last eight years turning Ghana into a beggar-nation and succumbing to Poverty Reduction Strategies proposed by outsiders who know nothing about poverty�. The implications of such statements, coupled with the zealotry employed in the snatching of vehicles including those of private citizens and residents came to haunt them. Massive capital flight, massive depreciation of the cedi, scarcities of petroleum products, etc. Perhaps mindful of the adverse implications of these negative statements, the Minister of Finance came out to assert that the economy was �not broke but facing challenges� and further to remind his colleagues that �money does not go where there is noise�. The facts are that the Atta Mills-led government has gone ahead and signed new programs with both the IMF and the World Bank, these same �outsiders who know nothing about poverty in Ghana�. In return these �outsiders� promised and approved loan programs worth about $1.1 billion to enable the NDC government to implement its economic program. The IMF program, Poverty Reduction and Growth Facility (PRGF), is to last till June 2012, while the World Bank Program, The Economic Governance and Poverty Reduction Credit facility is renewable on a year-to-year basis. Ladies and gentlemen we have provided this contextual background so Ghanaians can understand and assess the first year of the NDC government�s economic policies and programs. Simply put the NDC government does not have any economic policies or programs for Ghana. It is simply implementing programs and policies provided to it by the �outsiders� it had condemned in its manifesto, typical of the �doublespeak� of NDC governments. With this background in mind we now want to compare the performance of the Atta Mills government in its first year to what the Kufuor led government did in its first year so Ghanaians can judge for themselves which government has served Ghana better in the first year of implementing economic policies and programs, irrespective of what it inherited. BOLD POLICIES When the NPP government assumed office in January 2001, the then President admitted to the challenges facing the economy then, which was that the country was highly indebted and poor (HIPC). He then instructed the Minister of Finance to take the necessary steps so the country could take advantage of the potential benefits of the HIPC initiative. That bold decision, we must say, is still yielding benefits that are accruing to the Atta Mills administration. For example in the 2010 budget an amount of over GH�360 million that is being used to fund programs such as SADA, School feeding, Capitation grant, Schools under trees, Free school uniforms and exercise books, National youth employment, Youth in agriculture, among others is the result of the bold decision taken by the NPP government in 2001. One may ask has the Atta Mills government taken any bold economic decision that will yield returns eight years hence. Last Wednesday the President in an interaction with media sought to give the impression that his �team B� had done very well managing the economy. What does this mean? On the basis of what they had inherited, how well have they done and how does this compare to what the NPP government did in its first year? INFLATION When the NPP administration ended its term of office in 2008 which was its worst year because of skyrocketing fuel prices, the financial meltdown and worldwide soaring food prices, inflation stood at 18.1 percent. In November 2009 (the latest month available), at the end of the first year of the Atta Mills administration, inflation had been reduced marginally (by 6.7%) to 16.9 percent. It is important to note however that even with this decline the average rate of inflation in 2009, 19.6 percent, is still higher than the corresponding average for 2008, which stood at 16.9 percent. In contrast in the year 2000, inflation at the end of year stood at 40.5 percent. But by the end of its first year, the NPP led government had been able to reduce the rate of inflation significantly (by 47%) to 21.3 %. EXCHANGE RATE In 2008, the cedi�s depreciation with respect to the dollar amounted to 20.1 percent. However in 2009, in spite of the noise being made about the relative stability of the cedi, the cumulative depreciation of the cedi vis a vis the dollar will amount to 23.3 percent (higher than obtained in 2008). Let us contrast this with what happened between 2000 and 2001. In 2000, the cedi depreciation against the dollar was as high as 49.8 percent. But through astute economic policies, the NPP government was able to reduce the cedi/dollar depreciation to as little as 3.7 percent (a reduction amounting to over 92%). In addition the cedi/pound depreciation rate was reduced from 43.9 percent in 2000 to 3.8 percent in 2001 and the cedi/ euro depreciation was also brought down from 43.6 percent to 2.4 percent for the same time period. The depreciation of the cedi against the US dollar for the entire 8-year administration of the NPP was 58.2% using 2000 as the base year. Less than one year into the administration of the NDC the cedi has depreciated by about 30%. ECONOMIC GROWTH In the year 2008, the NPP led government was able to push the growth of the economy to a two decade high of about 7.3 percent. �The President in his inaugural address promised �open and honest governance� yet in the budget of 2009 the President did not acknowledge that the NPP had grown the economy by 7.3%. The President through the Finance Minister said the NPP record of GDP growth for 2008 was 6.2%. Eight months into the NDC administration when they came with a mid-year (2009) review President Mills did not admit that the NPP had grown the economy at 7.3%. That is the mark of an �open and honest government�! Today, Ghanaians know that under the NPP, in 2008 GDP growth was 7.3%. However, in 2009 the Atta Mills led government, was able to record an economic growth rate of only 4.7 percent, representing a significant (thirty five percent) decline over what obtained in 2008. This is a reversal of what has been happening over the past eight years. In contrast, however, in 2001, the NPP led government was able to increase the GDP growth by over thirteen percent from 3.7 percent to 4.2 percent. In 2002 GDP growth climbed to 4.5; in 2008 it was 5.2%; in 2004 it shot to 5.7%; in 2005 it rose to 5.8%; in 2006 it climbed to 6.4% and in 2007 it registered 6.3%. Clearly, the trend since then had been upward, culminating in the record 7.3 percent achieved in 2008. That continuous trend, that consistent upward growth is unprecedented in Ghana. Given this trend, anybody who would denigrate the effort by equating it to the injection of steroids or cocaine into an athlete�s body, the least said about him the better. One year into the administration of a government, ministers and their deputies must come to the realization that ministries are not propaganda secretaries of political parties. DEBT INDICATORS Ladies and gentlemen, in 2008, at the end of the Kufuor administration, the external debt to GDP ratio stood at only 27 percent. This means Ghana could use about 27 percent of our national income to pay off all our external indebtedness, making our debt quite sustainable. But in only one year of it�s administration the Atta Mills government has increased this by fifteen percent to about 31.1 percent, worsening our capacity to pay off our indebtedness. At this rate, by the end of its� first term in office the NDC government would have increased our external debt to GDP ratio to about 47 percent, pushing the nation back to the status of being a highly indebted nation - just eight years after moving out of that status. In contrast by the end of 2000, when the NPP was taking over from the NDC, the external debt to GDP ratio stood at 156.3 percent. In other words at the end of 2000 Ghana needed one and half times our entire national income to pay off our external creditors. In its first year of managing Ghana�s economy, the NPP led government was able to reduce this indebtedness significantly down to 116 percent. The decision to go HIPC brought immediate benefits to the economy. On the issue of debt servicing, the Atta Mills led government assumed office with a debt servicing GDP ratio of only 0.4 percent. But in just one year of its administration this has been increased to as high as 3.96 percent. In contrast the Kufuor led government was able to reduce significantly the debt servicing GDP ratio from 14.1 percent of GDP in 2000 down to only 5.9 percent in its first year of managing the economy. PER CAPITA INCOME Per capita income in 2000 was SU$264. In 2008 it had climbed up to $712. Is that the mark of a distressed economy? Is that the sign of a run-down economy? FISCAL INDICATORS In assessing how well an economy has performed one may resort to looking at various fiscal indicators such as primary balance, domestic revenue mobilization, the extent of domestic borrowing and budget balance. To the extent that fiscal policies have been well implemented there should be noticeable improvements in these indicators for any particular year. In 2008, when the term of the NPP administration ended, domestic revenue mobilization was quite robust, amounting to about 28 percent of GDP. However in the first three quarters of the Atta Mills administration, domestic revenue mobilization had declined substantially, amounting to only 17.2 percent of GDP, (a significant decline of about 36 percent). In contrast when the NDC-led government ended its term in 2000, domestic revenue mobilization amounted to 17.7 percent. In one year the Kufuor led government was able to improve upon this, resulting in revenue to GDP ratio of 18.2 percent. What this means is that in 2009, the NDC led government in spite of introducing additional taxes was performing at the same rate as it was doing in 2000. The Kufuor led government had however moved from a rate of 18 percent to 28 % percent, a marked improvement in terms of effort. On the matter of the domestic primary balance, the NDC led government inherited a reported deficit of 10.1 percent of GDP in 2008, and at the end of the third quarter of 2009, this had improved to a deficit of 1.1 percent of GDP, albeit an improvement which was achieved on the back of significant arrears accumulation on public sector wages, GETFUND, and the district assembly common fund. In 2001, the NPP government achieved a domestic primary balance surplus of 3.6 percent of GDP, also an improvement on the surplus of 2.3 percent it inherited in 2000. On the issue of the budget balance the NDC government inherited a deficit of 11.3 percent in 2008. On the basis of the latest information made available the projected deficit is expected to see a marginal improvement to a deficit of 10.2 percent. In 2000, the budget deficit was recorded at 8.5 percent. This was however improved significantly to 5.2 percent in 2001. It is important to mention that the deficit as defined here includes divestiture receipts to allow for consistency of definitions over the periods in question. With respect to domestic financing of the budget, the Mills administration inherited a domestic borrowing effort amounting to about 6.8 percent of GDP in 2008. On the basis of its own projections it is expected that domestic borrowing for 2009, will amount to 6.03 percent of GDP an improvement of about 11 %. In contrast the Kufour administration inherited a domestic borrowing effort which amounted to 8.83 percent of GDP in 2000. But in a year it was able to reduce this to only 2.3 percent of GDP (a reduction of about 74 %). Clearly the improvement in 2001 (74%) is much better than in 2009 (11%) - an indication of more robust implementation of economic policies in the earlier period. The effort on the reduction in domestic borrowing would manifest itself in the path of domestic interest rates. Interest rates In 2008, the rate on the 91-day Treasury bill stood at 24.7 percent but by the third quarter of 2009 it stood at above 25.7 percent, an increase of over 4 percent. As would be expected the average lending rates which hovered around 26.4 percent in 2008 rose to above 30 percent in 2009. In contrast the 91-day Treasury bill rate which stood at 38 percent in 2000 was reduced to 27 percent in the first year of the NPP administration. Consistent with this trend, average lending rates declined from over 30 percent in 2000 to below 25 percent in 2001, a marked improvement from the trends existing between 2008 and 2009. Commodity Prices The Ghanaian economy being small is heavily influenced by trends in our terms of trade particularly as reflected in the prices of our major exports (gold and cocoa) and imports (oil). Thus the assessment of economic performance must be evaluated in the context of the extent to which the trends in these commodity prices impact positively or negatively on the economy. For example in 2008 cocoa prices stood at $2200 per tone. However by the third quarter in 2009, cocoa prices were averaging over $2978 and reaching over $3000 by end year (an increase of over 36 percent). Gold prices which stood at an average of $872.4 an ounce in 2008 rose to over $1000 per ounce in 2009, an increase of over 15 percent. Finally oil prices which averaged over $98.5 per barrel in 2008, declined by over 40 percent to an average of about $56 per barrel in 2009. Together this means that developments in the terms of trade between 2008 and 2009 had a positive impact on the Ghanaian economy. Consequently economic management in 2009 should have been easier. On the contrary, cocoa prices dropped from $1094 per tone in 2000 to $1020.8 per tone in 2001. Gold prices also dropped from $280.4 in 2000 to $271.6 per ounce in 2001 oil prices however reduced marginally by 1.5 percent from $25.9 per barrel in 2000 to $25.5 per barrel in 2001. These adverse developments in commodity prices should have made the management of the economy more challenging in 2001 as compared to what obtained in 2009. Gross International Reserves On the back of the positive terms of trade developments, as well as the global recession the Atta Mills government was able to increase the stock of international gross reserves from the $2.036 billion that it inherited in 2008 to about $2.317 billion in 2009 (a marginal increase of 13.8 percent). During this time period for example the oil import bill was reduced from $2.1 billion in 2008 to $1.1 billion in 2009. In contrast, despite the negative terms of trade developments that occurred between the year 2000 and 2001, the NPP led government was able to increase the stock of gross international reserves significantly from $233 million to over $364 million in 2001 (an increase of over 56%). The NDC in their manifesto have assured of �the attainment of a single digit inflation, exchange rate stability and balanced budget with a deficit target not exceeding 3% in any given year�. The have assured of �an annual growth rate of at least 8%� (emphasizes ours). If they have been able to achieve this, the facts speak for themselves. Talk indeed is cheap. We have demonstrated that they have not been able to achieve any of the above. SPECIFIC REVENUE ENHANCEMENT MEASURES In the area of revenue mobilization, Professor Mills had told Ghanaians that the prices of petroleum products were very high primarily because the NPP had loaded the price with many taxes. Upon assuming the reigns of government one of the first things the President did was to remove the levies from the price build. That cost the nation between 600 � 800 billion cedis about 60 � 80 million Ghana Cedis in revenue which could otherwise have accrued to us for development. Today, faced with that huge revenue gap government is scampering all over and devising other revenue enhancement measures. The NPP waived import duties on rice, wheat, maize and vegetable oil to help stabilize the cost of food prices and curb inflation in the face of escalating world food prices. The effort of government�s actions then was profound against the food riots in all the neighboring countries especially, Benin, Togo, Mali, Burkina Faso, Guinea, Cot� d�Ivoire and Senegal. Ghana was spared this ordeal. Early in 2009 government sounded to bring the duties on food items, primarily as a revenue measure but stayed action in the face of good counsel proffered by the Minority in Parliament. Today government has brought the tax on these food items back. Admittedly, it may help local food production if well-managed but it also has its own problems. The World Bank has issued a caution that in the light of rising fuel prices, food prices may soon rise again. One could only hope that the reintroduction of the import duties does not trigger a spiral in the prices of these food items. In 2008 the NDC in Parliament vehemently opposed the imposition of the Communication Service Tax. The then Minority Leader who is the Majority Leader now christened the tax �talk tax�. The Committee for Joint Action (CJA) including then candidate Mills used placards to register their disapproval of this tax. Hon. Haruna Idrissu, current Minister of Communications, then Ranking Member of Committee on Communications and H.E. John Dramani Mahama, our Vice-President, then Ranking Member on Foreign Affairs were both vociferous in their opposition to the so-called �talk-tax�. Today, government in a sudden u-turn has not only embraced the tax but is initiating moves to increase monitoring of the compliance of the service tax. What do we tell the Professor who joined the CJA in its opposition who now says he wants to �deepen compliance�? The country must grow and grow indeed we will. Since government revenue has suffered a big jolt with the abolition of the petroleum levy government must still fill its revenue basket. On selected commodities government has shifted from specific to ad-valorem excise taxes. Industry is soon going to be hit hard and the effect may not be what we desire. The effective increase in tax on a bottle of beer is 120%; 163% on malt; 162% on soft drinks (Coca cola, Fanta etc.); 110% on Guiness Stout; 20% on Akpeteshie and the other local dry gins as well as 20% on mineral and other forms of distilled water including water for intravenous infusions. In the very short term this will have a corresponding increase in the VAT Component on these products but the prices of the products will go up in the medium term. Consumption of alcohol is elastic and if prices escalate consumption will drop; volumes of production will then drop in the medium to long term and VAT collection will correspondingly also drop. Import of inputs will drop; import duties will thus go down and total tax revenue will go down and manufactures in the medium term may lay off workers. Ladies and gentlemen, what has happened to the NDC manifesto pledge on page 45: Tax policy will be used to encourage people to work? What happened to the NDC policy �to address low productivity and high production costs�; and the policy to address inimical tax regime (page 49). If we are to succeed in making the Ghanaian economy competitive and the industry-destination in the sub-region, we may have to compare and contrast with the prevailing environment in the other countries in the ECOWAS zone. We cannot grow our businesses if taxes become punitive. If we cannot grow our businesses, employment will severely adversely suffer. On the basis on the assessment of the various economic indicators as discussed above, it is clear that the NPP led government did perform better in its first year of managing the economy that the Atta Mills led government. In spite of the NDC led government�s apparent dislike for �outsiders who know nothing about poverty in Ghana�, it has now handed the nation�s economic management to these same �outsiders by virtue of the PRGF program with the IMF and the EGPRC with the World Bank. The history of NDC led programs with the IMF is well known. The last PRGF by the NDC led government with the IMF failed abysmally. It had to be saved by the NPP government in 2001. The current EGPRC with the World Bank has had only partial results. The second tranche of $150 million expected from the World Bank could not be disbursed in 2009 because the government could not meet at least three conditionalities. This cannot be said to be satisfactory. The Minister of Finance and Economic Planning and his team, as well as the President must come to terms with reality. We have been down this path before. Ghana deserves better. The current program with the IMF and World Bank will simply not get us into a middle income status by 2020. The 2010 budget does not have any innovative programmes and policies that will cure our ills. Instead the government has increased taxes, tariffs, fees and levies that will lead to the erosion of incomes of Ghanaians and lead to more people being thrown into the poverty trap. Is this a better Ghana? WORKS, HOUSING & WATER DELIVERY In the area of rural water delivery it is significant that for the whole of 2009 only 280 boreholes were constructed. The most noteworthy obstacle is the announcement by the President abolishing the 5% community contribution towards the provision of rural water in fulfillment of the NDC manifesto promise. This populist announcement which was done without proper consultation with stakeholders has stalled the projects. Dreadfully no funds were provided towards the eradication of the guinea-worm disease even in the endemic areas of Central and West Gonja, Savelugu Nanton in the Northern Region and Gulumkpe in the Brong Ahafo Region. In year 2009 there was no bold policy to expand urban water coverage apart from the Tamale, Koforidua, Kwanyarko and the Cape Coast projects which were all started by the NPP. The affordable housing projects started by the NPP government to produce 5140 units of houses were literally left in the bush in 2009. In 2010 government has merely signaled to �explore avenues for securing funding to complete the 5140 units�� Manifestly, government is not attaching priority to housing delivery and the deficit in the sector may undoubtedly shoot up. Trade and Industry Developments in the Trade and Industry sector depend to a large extent on the movements in broad macroeconomic indicators such as inflation rate, interest rate and exchange rate. Beyond these we may talk of sector specific policies and specific fiscal measures towards the growth of the sector. It is of great concern that the share of manufacturing in DMBs credit declined by 1.2% over 2009. The downturn in activities at the Ghana Stock Exchange culminating in a decline of 39.7% in the Ghana Stock Exchange index in 2009 as against an increase of 63.5% in 2008 is a reflection of the lack of confidence of the investor community in the Ghanaian economy under the NDC government. In 2009 stocks also lost on the average 11% of their value. In 2009 government promised in the 2009 Budget that sheanut processing facilities would be established in the three northern regions. Only a sod-cutting ceremony involving a private sector initiative has taken place at Buipe. The effect of other revenue measures that government initiated has already been discussed and government would be mindful of its effect on industry and employment. Education Education is fundamental to all social interventions. A well educated society is a great asset to a nation and determines to a large extent the quality of its human resources. The impact of education cuts across all sectors. In health it helps to improve sanitation, reduces the incident of malaria and all types of diseases. In agriculture, attitudinal change and the ability of farmers to adapt to modern farming practices are a pre-requisite for a successful agricultural revolution and extension programme. In view of the on-going education reform, it was expected that the government would give due weight to the education sector budget. What we rather see is the usual ministerial allocation with a small top up. No wonder the government failed to meet many of the social intervention targets set in education for the 2009 financial year e.g: � The 1.6 million Ghanaian school children promised free school uniforms in 2009 never materialized as at December of the same year. � The 10 free exercise books per pupil for 5 million pupils for 2009 became a deception. � The 20% incentive to teachers in deprived schools in rural areas, and professional duty and incentive allowances to science and mathematics teachers in 2009 also became a mirage only to be re-echoed in the 2010 budget. Because of the NDC government�s bad policies the chicken that lays the eggs was starved of nutritious feed. Consequently, the GetFund and the District Assemblies� Common Fund which provide funding base for most educational activities suffered serious shortages. GetFund suffered a deficit of 25 million Ghana Cedis and the DACF a deficit of 10 million Ghana Cedis by August 2009 and all by 15% by the end of the year. How then can Ghanaians take the NDC government under President John Atta Mills serious on fresh pledges and promises made in the 2010 budget? On page 314 item 907 of the 2010 budget statement government states, �government in the medium term will provide permanent accommodation to every single school currently under trees. The government plans to build 165 in 2010�. The figure 165 does not match the reality on the ground. It is established that the total number of school under trees is about 5,227. Only a crawling government can boast of 165 structures in a year as a great achievement. In the 2009 budget, page 147 item 633 the NDC government acknowledges the laudable performance of the NPP administration in 2008 as having built 377 schools under trees made up of 230 6-unit classrooms and 147 3-unit classrooms in addition to 250 other classrooms. It is absolutely impossible that at the pace of 165 per year total elimination of schools under trees and the Shift system would be achieved in the medium-term as proposed by the NDC government. The NPP believes that a more resourceful approach, dynamism and affirmative action is required such as a goal. As far as the motivation and incentives to teachers is concerned, the NPP government can claim to be the pace-setter. By the recognition of teachers as the centre around which the success of the reform can be built a number of policy measures were implemented. Such as: � Granting of exemption of duty on teachers� imported vehicles � Vehicle allocation to heads of Educational Institutions � for the first time to college principals and SHS heads � 300 buses to second cycle schools These weigh far in the hearts of teachers than the mere promise of allowance increase which after one year has not progressed beyond the negotiation stage the NPP government left off. The NPP is extremely shocked at the callous attitude displayed by the NDC government towards the SHS programme and in particular the future of Ghanaian youth from disadvantaged socio-economic background. By reducing the 4 year programme to 3 years, 75% of SHS leavers who hope for a better education and a better future through the 4 year reform programme have, once again been dislodged. The reasons the government gives for sacrificing the welfare of our future generation and valuable human resource for the 21st century are untenable; � The 4 year will cost extra to parents � Government should concentrate on providing infrastructure, motivating teachers, providing teaching and learning materials We, members of the NPP, find these arguments objectionable. No cost is higher when dealing with human resource development and the future of our young generation. Parents will like to see their wards receive quality education once and for all than to have mass failures and spend several Ghana Cedis on extra classes/remedial classes. On page 144, item 428 of the 2010 budget statement it is stated: �government reversed the duration of the Senior High School from 4 year to 3 years�. Such a statement smacks of illegality and arbitrariness and undermines the Education Act of 2008 and the authority of parliament to amend its own laws passed. The Act clearly and unambiguously states that the SHS shall be 4 years and is still in force. Why can�t the government wait at least for the cohort of the four year system to pass out and compare the results? Why can�t the government wait to assess the impact of the corrective one-year added to the programme to determine its efficacy? In the interest of the future of our students, parents and the educational system, the NPP calls upon the Minister of Education and the government to refrain from making such misguided statements to the public. We also know that effective monitoring and supervision brings about quality assurance. Hence, on P153, item 665, of the Minister�s 2009 budget statement he stated that the National Inspectorate Board will be in operation. As at the time of presenting his 2010 budget nothing significant has taken place. The Minister chose to be silent on it. Indeed, the National Inspectorate Board, the national curriculum and research unit and other important institutional structures necessary for smooth implementation of the reform as enshrined in Act 778 have not been established as at now. What has happened to the 1 year free apprenticeship training programme for JHS leavers who are unable to gain admission into SHS? The only one important programme which ensures that pupils leave JHS with some basic skills has disappeared and never mentioned in budgetary allocations. This clearly shows that the NDC government�s commitment to the education reform is negative. It wants the reform to fail and describe it as a bad programme. At the time of presenting the 2009 budget, it was felt that the government had just taken office and could be pardoned for not initiating new policies and ideas. After one year in office, still nothing new seems to be evidenced. From pages 148-151 (just 4 pages) one can count the use of the word �continue� (NPP policies) 14 times. So what is new in the education section of the 2010 budget? What is there that is new in the government�s so-called �Better Ghana� in education for Ghanaian children and youth? EMPLOYMENT AND SOCIAL WELFARE Ladies and gentlemen, employment is a key to poverty alleviation. Not surprisingly, the NDC has indicated in their manifesto (Pg 22) that �as social democrats our goal is to significantly improve the lives of citizens�. Government continued the NYEP and afforestation programmes. When Government boasted at the end of the year that they had provided 110,798 persons with jobs, they were literally referring to the effort of the NPP. But what about all those District Co-ordinator and other youth on the various modules who have been thrown out on the streets? Create unemployment to provide employment that is the NDC style! In 2009 government assured that the single-spine salary structure would take off that year. The pledge did not materialize just like many other promises. We are told of its implementation in January, 2010. Let us hope for the best. On pages 73 and 74 of their manifesto, the NDC have stated that they will, among others, reduce child labour, street hawking to the minimum and introduce a range of social protection schemes for the urban poor. For both 2009 and 2010 no new schemes are mentioned. In the face of the contrivance, problems which surrounded school feeding programme it is no wonder that the feeding target is behind schedule. The ordinary parent in the countryside needs that. There has been no new bold policy to offer employment to the teeming unemployed youth. What has been done is to replace young people in the NYEP with NDC sympathizers. There is also a so called ZOIL (Beach Sanitation Gangs), announced with fanfare but no budgetary provision has been made. The National Youth Employment policy which would have placed employment especially of the youth on the national policy agenda has seen no action one year after it had been approved by the last NPP cabinet meeting. Health The National Health Insurance Scheme is one of the few organizations fully decentralized at birth. Pursuant to the national policy on decentralization, it will not only be the height of absurdity but inimical to the Scheme�s operations if it is centralized. There is no proper actuarial study on the one-time payment and it is no wonder that one year on there is no clear guidance by the NDC. Foreign Affairs and Investment Climate In 2009 government assured (par.884-886 of 2009 budget) to �pursue policies and programs in its engagement with the international community with optimal benefits while protecting and promoting the interest of Ghana. Government pledged to �establish a just and equitable international economic and social order through a robust pursuit of economic diplomacy, respect for international law etc, and that the ministry would work towards enhancing the image of Ghana both home and abroad. Foreign Direct Investments (FDIs) flow into a country when investors feel comfortable that their investments will be safe. Therefore when you have a situation where agreements entered into with a legitimate government are being reviewed because a party imposes that obligation on itself in its manifesto then we have a problem. It puts fear into potential investors-this is dangerous for attracting investment. That is why the nation cannot be happy with what happened with the handling of the Ghana Telecom-Vodafone Agreement. After the ballyhoo we have come to square one. The exercise was much ado about nothing. The nation is watching in how COSMOS will be treated. Government must demonstrate circumspection. Domestic policy has major implications for foreign policy. Potential investors are carefully watching and they will make decisions on how they perceive investors are being treated. Another matter that may shake investor confidence is the upping of mining royalty payment to 6%. The tax was imposed before the process to re-engage the companies which had signed individual agreement with a legitimate government. There might be problems for us as a nation is our politico-economic environment is judged to be unpredictable. In 2008 when the case of 44 Ghanaians who had been murdered in Gambia blew up the NDC was most vociferous. The sitting Vice President made the loudest noise when he filed a question and after the then minister had answered, he Hon. Mahama insisted that the NPP administration had not done enough for the 44 victims. Today, the NDC in government has nicodemously settled with the Gambian government, hiding behind a Fact-finding mission�s report that there were 6 Ghanaian victims and not 44 as they the NDC had hitherto told the world. Diplomacy is about protecting and promoting the interest of Ghana, 6 out of 44 cannot be described as optimizing the interest of Ghana. AGRIC SECTOR Regarding the performance of the agriculture sector in 2009 the budget statement of 2010 states that the growth of the Agric sector was 6.2%, thus exceeding the target of 5.7% (Pg 18). This projected out turn cannot be correct since all the major subsectors in the sector recorded under performance. A few examples will demonstrate this point. Major Food Crops Target 2009 (%) Actual Achieved 2009 (%) Maize 42.2 5 Rice 22.8 20 Groundnut 25.8 3 Cowpea 37.7 3 In the case of livestock in 2009, 2 million chicks were to be supplied to poultry farmers but only 25,000 representing only 1.25% of the target were actually supplied. In the fisheries sub sector we are witnesses to the fact that fishermen could not fish during the peak of the fishing season as a result of shortages of pre-mix fuel. So if the subsector performed below targets, how can the sector as a whole exceed the target? To all intents and purposes, this is a case of polishing figures to throw dust into the eyes of the public. In any case even the below target figures are doubtful, how can you project figures for crops at a time that land preparation for the minor season had just began? We believe that it is imperative for the government to provide the nation with accurate information. We note that at the beginning of year 2009 the NPP administration had procured 778 tractors, 200 power tillers, 16 water pumps, 20 rice mills, 15 tractor mounted drilling rigs for the 2009 Farming Season. If with all these we could only manage a 5% increase in maize production and a 20% increase in rice production then this is an inefficient use of resources. One is tempted to question whether these resources were actually allocated to real farmers given what happened in the matter of self-appropriation to top NDC government functionaries involving tractors which the NPP administration brought in the before exiting. It is worth noting that in 2008 we achieved a 20% increase in maize and a 62% increase in paddy rice over the production figures of 2007. The NDC government has not initiated any new policies and programmes as they seek to portray. The Afram Plains District Agricultural Development Project was initiated in 2005 and implementation started in 2007. The implementation of the livestock development project started during the first term of the NPP administration. The National Strategic Buffer stock was started in 2007. Three warehouses each in Yendi, Tamale and Wenchi were re-habilitated for that purpose and grain pro-cocoons were procured for grain storage. By the end of 2008 Nine Hundred (900) metric tons of maize had been stored in pro-cocoons at Sunyani, Wenchi and Ejura. These are there for anybody who cares to verify. IRRIGATION Small Scale Irrigation Development Project and Small Farms Irrigation Project were all initiated during the First term of the NPP administration. Tono and Bontanga, the two big irrigation systems in the country, had been rehabilitated. The Fertilizer subsidy was initiated and implemented by the NPP administration. These are just but a few examples of projects and programmes that the NDC administration wants to claim credit for. We as a Nation must learn to give credit where credit is due. CONCLUSION Ladies and gentlemen of the press given the limited time and space at our disposal we have not been able to cover every blade of grass. That is regrettable. However there cannot be any shred of doubt that the one year rule of the Professor Mills� NDC can be captured in one simple phrase: a catalogue failed promises. From the failed promise to reduce prices of petroleum products drastically; through the failed promise of putting money in people�s pockets; the failed promise of building consensus; the failed promise of being the President for all Ghanaians; the failed promise of healing wounds; the failed promise of ensuring the unity of our country, the failed promise of no Ghanaian should live in fear of armed robbery; the failed promise that there would be no room for political vendetta, blame game and witch-hunting; the failed promise of massive job-creation, expansion in infrastructure and open and honest government; the failed promise of creating a congenial atmosphere for businesses, especially, Ghanaian businesses, no one could be in doubt that the performance of the Prof. Mills-led NDC has been most abysmal. Indeed, the administration is nothing but a tale of failed promises. We believe this appraisal is indeed a charitable one, made in utmost good faith and made in the supreme interest of our beloved country, Ghana. In the words of Prof. Mills in the last part of his inaugural address we are doing �what is right, right by human standards and right by divine standards� as we continue to pray that �God continues to bless our homeland Ghana and make our country even greater and stronger�.