Friday, 21 November 2014

DUFFUOR SETS UP INSTITUTE


Kwabena Duffuor
By Kofi Henaku
The Institute for Fiscal Studies (IFS) established in March 2013 has been inaugurated in Accra. The Institute is an NGO which is to act as an economic think tank and whose mission is to undertake innovative research to enable it contribute to the fiscal and micro-economic management Policy of Ghana.
Its main focus will be on growth and development.
It is also non-partisan policy think tank which will create a platform based upon informed research to disseminate information and encourage vigorous debate on public finance, policy and economic management, build capacity, organize training on economic issues for public sector officials.
The IFS was founded by Dr. Kwabena Duffour a former Finance Minister and Governor of the Bank of Ghana.
The chairman of the governing Council is Mr. Alex Ashiagbor former governor of Bank of Ghana and among its members are Mr. K.B. Asante, a former diplomat and Minister, Mrs. Kate Quartey Papafio a notable economist amongst others.
The Executive Director is Professor   Newman Kusi, an academic and former economic advisor at the Finance Ministry. The council will also include both the Chairman and the Ranking member of the Parliamentary sub-committee on Finance.
In his remarks the Executive Director said amongst others, the Institution intends to produce a book on the economic management of Ghana from 1957 to date.
The founder Dr. Duffour stated that IFS has been founded to contribute to the economic discourse of Ghana. It also aims to do research on the fiscal challenges and input into public finance and fiscal management of the economy.
It will also do research and put out its findings for debate.
It will engage in capacity building and training of personnel for the management of the economy.
Mr. K.B Asante asserted that the truth must always be told and it was important that a comprehensive book on the economic management of the country is to be written as it will be a reference point for the economic management of our country by Policymakers.

Editorial
BURKINA FASO
Strange things happen in politics and one is unfolding in Burkina Faso.
Under pressure from the Economic Community of West African States (ECOWAS) and the so-called international community, a diplomat has been imposed on the country as interim President.
The problem is that this diplomat was not involved in the mass mobilisation which eventually led to the removal of President Blaise Campoare from power.
He may not even have an understanding of the real motives for driving Campoare out of the Presidential Palace.
Indeed, the new President for all we know was a Campoare loyalist who took orders from the departed head of State and contributed to the mess.
 What is even more surprising is the fact that another Campaore is being imposed on the Burkinabe people under the guise of democracy.
 Strange times indeed!

Kan Dapaah on budget statement

Albert Kan Dapaah
Mr Albert Kan Dapaah, former chairman of the Public Account Committee of Parliament has urged government to do more to ensure easy comprehension and transparency of annual budget statements.
He said this would enable the citizenry offer constructive inputs and critiques on how revenues have been utilized to the benefit of the entire masses.
This he noted is the way to go to give opportunity to the people to exercise their democratic rights to demand accountability and prudent management of state resources which the government holds in trust for economic development.
He said the current exclusion of the citizenry in the planning of the country’s budgets could partly be blamed for the prevailing mismanagement, misappropriation and unbridled dissipation of public sector funds which has led to higher fiscal deficits.
The former MP for Afigya-Kwabre-North and Executive Director of Financial Accountability and Transparency FATS-AFRICA, a civil Society Organisation (CSO), was leading a discussions at a media sensitization workshop in Kumasi.
Dubbed “Road show on Citizens’ Budget”, it was put together by penplusbytes, a media organization committed to upgrading the knowledge of journalists on the use of Information Communication and Technology (ICT) to boost their work.   
The Penplusbytes also creates ICT platforms for CSOs, public and private institutions and also works to facilitate citizens’ participation in governance through ICT platforms.
The event was used to introduce an abridged and simplified booklet on budget statement and the economic policy of the Government of Ghana for 2014 financial year published to facilitate the public’s participation in governance.
Mr. Dapaah said the government owed the people the responsibility to explain how Revenues- monies collected through taxes or grants were spent-Expenditure, adding that a budget statement is all about Revenues and Expenditure.
Mr. Jerry Sam, Projects Director for Pensplusbytes, outlining some of the reasons for the revision of the Budget Document for the period under review, said it was to ensure continued pursuits of economic growth as well as adjust to accommodate higher interest costs caused by rising interest rates, higher borrowing and exchange rates depreciation.
He said other factors that informed the revision were; higher foreign financed capital expenditure due to exchange rate depreciation, higher subsidies for utilities and petroleum products,  upward compensation payments to public sector workers as well as lower tax revenues and grants.
Mr Sam said the booklet also captures figures on the 2012-2013 budgets to serve as reference point or comparative figures for the 2014 budgets.
Credit: GNA

What I saw in Gaza
Throughout my career at the World Bank, and at the UN, I have come across many war zones but none compare to this.
By Inger Andersen
Last week, I visited the Palestinian territories. I wanted to hear firsthand from the people of Gaza and understand the scope and magnitude of the recent conflict.
I am now back from Gaza with a prevailing feeling of disbelief and sadness. Throughout my career at the World Bank, and at the United Nations or even before, I have come across many war zones but none compare to what I have just seen in Gaza: no scene of destruction, desolation and despair I have witnessed is equal to the tragic stage of Gaza.
Today, I feel obliged to add my voice for the voiceless and to plead that none of us forget the Palestinian people. It is our collective and historic responsibility to step up support and mobilise a response commensurate to the needs of the Palestinian people.
As development professionals, we deplore the level of violence and destruction and urge all sides to make determined efforts to find a permanent end to these recurrent hostilities, whether incursions, missile attacks or bombings. This will require access to imports and freedom of movement in Gaza and the West Bank, as well as mutual assurance of security in both Palestinian territories and Israel. Our response needs to address both the urgency of now - the humanitarian imperative - and to pave the way for a sustainable development of the Palestinian economy - the development imperative.
Humanitarian tragedy
The conflict and humanitarian tragedy in Gaza has made an already struggling Palestinian economy worse and put further stress on the fiscal situation of the Palestinian Authority. Recession hit the Palestinian territories in the first quarter of 2014, with levels of consumption and donor assistance declining significantly. Donors' assistance in the first half of 2014 has fallen by more than $200m compared to 2013.
The economic decline has resulted in growing unemployment: one in six in the West Bank, and nearly every second person in Gaza. Poverty has reached 26 percent and is twice as high in Gaza than in the West Bank.
Growth increases when restrictions ease. As documented in last year's World Bank report: Area C and the Future of the Palestinian Economy, political uncertainty and restrictions on movement and access are the main reasons why the Palestinian economy is unable to take off.
The Bank estimates that $3bn is lost annually due to restrictions imposed on 60 percent of the West Bank (the so-called Area C).
Even before the conflict, these constraints were more binding in Gaza, where the economy suffered from recurring violence as well as blockades on exports and imports and where two-thirds of the population was receiving food assistance.
Because growth increases when restrictions ease, and inversely, growth slows when restrictions are greater, the ongoing negotiation between Israel and the Palestinians on the new mechanism allowing construction materials to go into Gaza is a step in the right direction. But it is only an inch in a journey of miles.
I am convinced that the World Bank Group can play a transformational role in the Palestinian territories, as it should in most fragile and conflict affected settings. As a development institution, it is both a mandate and a responsibility.
Since the Oslo Accords, the World Bank Group has provided nearly $1bn and has leveraged four times more. Our Board of Directors recently approved additional support, and we will be front-loading a $62m emergency package consisting of budget support and investment projects in such key sectors as water, electricity and municipal services. These are areas where the needs are immense and where the Bank Group has a competitive edge.
Budget support
But more is needed. As discussed with Finance Minister Shukri Bisharra, budget support is essential to ensure institutional strengthening and provision of services. More is needed to anchor reforms and services and sustain a viable economy. The two pillars of the Bank Group strategy are effectively designed to contribute to respond to this challenge: Strengthen the institutions of a future state to ensure service delivery to citizens; and support private sector-led growth that increases employment opportunities.
An economy cannot live under siege, nor can the tragic cycle of destruction -reconstruction be sustained. It is not too early to strengthen the institutions that will eventually contribute to greater peace and security.
For the Palestinians struggling daily, equally critical is the access to water, electricity and municipal services. I saw the destroyed water reservoir in Al Monttar area (Shujayea) which would have serviced 250,000 people. I walked into the shell-struck electricity storage facility that now resembled a lunar landscape. While visiting al-Shifa hospital, I discussed with doctors the dire need for medical equipment and supplies, staff and fuel, all severely strained by shortages and outages.
Numbers fail to capture the human realities of the daunting scenes I witnessed at the hospital. As winter sets in, the partial or total destruction of 60,000 housing units has led to 100,000 people without shelter.
On October 12, the international community came together in Cairo to voice strong support for the Palestinians and for the reconstruction of Gaza, and pledged resources. This is encouraging but we need to ensure that these are new resources and are effectively committed and disbursed in order to mitigate the tragic impact of the Gaza conflict and to unleash the economic potential of the Palestinian territories.
In cooperation with the Palestinian Authority (PA), and in coordination with the EU, UN and other international partners, the World Bank Group intends to play its full role and assist the Palestinians in mobilising the resources with a view to short and long term needs.
Unfulfilled promises are a sword of Damocles. An economy cannot live under siege, nor can the tragic cycle of destruction-reconstruction be sustained. It is not too early to strengthen the institutions that will eventually contribute to greater peace and security. It is not too late to ensure a viable economy that will foster a just and sustainable development for all Palestinians.
Because Palestinians have often given the region its tempo and have always served as a cause or as an excuse, because Palestinians are on the cutting edge of Arab minds and of the world's collective imagination, and because Palestinians will remain at the heart of the Middle East, a breakthrough on the path of stability and prosperity would have far-reaching consequences and a positive impact on the rest of the region. Would it not be the best way to fight sectarianism, violence and extremism? I'm just back from Gaza and this is still my hope.

Inger Andersen is responsible for World Bank strategy and operations throughout the Middle East and North Africa region. She assumed her position shortly after the start of the Arab Spring and led the realignment of Bank engagement with the region to meet emerging needs and priorities.
Credit: www.aljazeera.com

Government committed to promoting culture, tourism
Alhaji Sulemani
Alhaji Amidu Sulemani, the Upper West Regional Minister, has said the government was committed to promoting culture, creative arts and tourism to enable Ghanaians to derive the maximum benefits.
Alhaji Sulemani who is also the Member of Parliament for Sissala West said this was evident in the creation of two separate Ministries to reinforce chieftaincy, tradition, culture and creative arts.
Alhaji Sulemani was speaking during the Regional Cultural Festival organise by the Centre for National Culture under the theme: “The Creative Arts and Tourism Industry: A Platform for National Development”.
The celebration formed part of the Region’s preparations towards participating in the 2014 National Festival of Arts and culture (NAFAC) to be held at Sunyani from 29th November to 7th December.
Alhaji Sulemani thanked the Minister for Tourism, Culture and Creative Arts, Mrs. Elizabeth Ofosu-Agyare, for her lead role in reviving the National Festival of Arts and Culture which had not been celebrated for some time now.
He said the celebration of the festival was dear to the hearts of many lovers of culture particularly traditional rulers who not just custodians of culture but also partners in its exhibition to the outside world.
Alhaji Sulemani congratulated artists and exhibitors for their efforts at preserving their culture and urged them to develop their skills and make a living out of it.
The Regional Minister commended the chiefs and people of the region for continued celebration of festivals notably the Kobine (Lawra), Kakube (Nandom), Parri Gbielle (Tumu), Bongo (Jirapa) and Dumba (Wa) among others which served to showcase their culture and reunite the people to reflect on their development agenda.
Alhaji Sulemani said the Region was also blessed with a number of tourists’ attractions notably the Wechiau Hippopotamus Sanctuary, the Gwollu Slave Defense Wall, the Wulli Mushroom Rocks, the Wa Naa’s Palace among others which if well harnessed could be a source of wealth creation for the people.
He said he was not happy about the manner in which the impact of technology was gradually overriding the way of life of the people.
“Television, mobile phone and the internet are exposing our young ones to foreign cultures, some of whom are regrettably demeaning to our cultures,” he said.
He said dance and music were gradually fading away and that it was common knowledge that in most educated homes the children could hardly express themselves in their mother tongues.
Alhaji Sulemani therefore called for the study of local languages at the primary and junior high school levels to enable the children express themselves fluently in their mother tongues.
Mr. Nuhu Issahaku Putiaha, the Municipal Chief Executive, said tourism promised to be the number one foreign exchange earner and also an avenue for employment and income generation for a good number of Ghanaians.
He said it was his conviction that the celebration of the festival would whip up the consciousness of the people to develop more interest in the sector.
Mr. Mark Dagbee, the Regional Director, Centre for National Culture, said cultural events such as this gave the people especially the youth to learn and appreciate each other arts and aesthetics.
Credit: GNA

Tanzania’s Masai face homeland eviction…so Dubai royals can hunt
Masai people living in northern Tanzania are facing eviction from their historical homeland, as the government has reportedly reneged on a promise and is proceeding with plans to remake the land into a hunting reserve for Dubai's royal family.
There are about 40,000 Masai people living on the 1,500 square kilometer “wildlife corridor” bordering Serengeti National Park. They are known for their semi-nomadic ways and have their own distinctive culture.
The original proposal by a company based in the United Arab Emirates to turn the land into a commercial hunting park was turned down last year.
But the deal seems back on track now and the Masai people were notified to leave their ancestral lands by the end of the year, the Guardian reported.
Tanzania’s prime minister, Mizengo Pinda, is scheduled to meet with the Masai’s representatives, who will speak out against the decision.
In their view, the sale of the territory will in some way or another impact the lives of at least 80,000 people and will leave those residing on the land without their heritage or livelihood, as Masai are reliant on the livestock living on the land.
In return for the sale, the government has proposed to offer an investment of one billion shillings (US$590,000) into socio-economic projects, which the Masai people have refused.
“I feel betrayed,” co-ordinator of the local Ngonett civil society group, Samwel Nangiria, told the Guardian. “One billion is very little and you cannot compare that with land. It’s inherited. Their mothers and grandmothers are buried in that land. There’s nothing you can compare with it.”
Nangiria revealed his suspicions that the government probably never intended to back down from the proposal. “They had to pretend they were dropping the agenda to fool the international press.”
Those who speak out publicly against the deal in Tanzania get killed by local authorities, Nangiria said, adding that his life was threatened as well. “For me it is dangerous on a personal level. They said: ‘We discovered you are the mastermind, you want to stop the government using the land.' Another said: ‘You have decided to shorten your life. The hands of the government are too long. Put your family ahead of the Masai.’”
Last year, an international media campaign against the hunting reserve proposal was led by the online activism site Avaaz.org.
The organization was behind the ‘Stop the Serengeti Sell-off’ petition, which gathered more than 1.7 million signatures. It also organized protests against the move.
“The Masai stare out from every tourism poster, but Tanzania’s government wants to kick them off their land so foreign royalty can hunt elephants there,” campaign director for Avaaz, Alex Wilks, said.
“Two million people around the world have backed the Masai’s call for president Jakaya Kikwete to fulfill his promise to let them stay where they’ve always lived. Treating the Masai as the great unwanted would be a disaster for Tanzania’s reputation.”
Meanwhile, Tanzania’s authorities have denied the existence of renewed plans.
“It’s the first I’ve heard of it. I’m currently out of the office and can’t comment properly,” a spokesperson for Tanzania’s Ministry of Natural Resources and Tourism said.
Credit: www.rt.com 

G20 in Australia: Buffoons v the Global South
(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South African President Jacob Zuma join their hands at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014

By Pepe Escobar
Here’s the G20 in Australia in a one-liner: a tiny bunch of Anglo-Saxon political buffoons attempts to drown out the Global South.
Countries representing over 85 percent of the world economy get together to (in theory) discuss some really heavy economic/financial issues, and virtually the only thing pitiful Western corporate media blabbers about is Russian President Vladimir Putin cutting an ‘isolated figure’.
Well, Washington and its string of puppets did try to turn the G20 into a farce. Fortunately the adults in the room had some business to do.
The five BRICS member-nations – despite their current problems, the G5 that really matters in the world - did meet before the summit, including the ‘isolated figure’. Economically, this G5 more than matches the old, decrepit G7.
Brazilian President Dilma Rousseff forcefully encouraged the G5 to turbo-charge their mutual cooperation – as well as South-South cooperation. That includes, of course, the BRICS Development Bank. The BRICS, stressing their ‘serious concern’, once again called Washington’s bluff – perpetually refusing to endorse much-delayed structural reform at the IMF.
The IMF quota and governance reform package was in fact approved by the IMF’s Board of Governors way back in 2010. One of its key resolutions was to increase the voting power of emerging markets, the BRICS at the forefront. For Republicans in Washington, this is worse than communism.
Chinese President Xi Jinping added that BRICS cooperation should not only boost the global economy, but also ensure global peace. Make trade, not tomahawks. The over 120 nations of the Non-Aligned Movement (NAM) – beggars in the G20 banquet - were paying very close attention.
So much ‘aggression’
Now compare the BRICS at work with EU heads of state meeting exclusively with US President Barack Obama to define their ‘strategy’ - not to improve the global economy, but to further demonize Russia.
And this after British Prime Minister David Cameron told Putin in a “robust” meeting he’s at a crossroads and about to be hit with more sanctions; Canadian Prime Minister Stephen Harper complained he had to shake Putin’s hand; and Australian Prime Minister Tony ‘Shirtfront’ Abbott got everyone to pose with koalas – talk about animal abuse - after apparently backing down on ‘shirtfronting’ the Russian leader.
And it was not only ‘Russian aggression’. Obama, Abbott and Japanese Prime Minister Shinzo Abe also met separately to increase “military cooperation” and “strengthen maritime security” in the Asia-Pacific. Against (what else?) “Chinese aggression.”
(L-R) French President Francois Hollande, US President Barack Obama, Britain's Prime Minister David Cameron and Germany's Chancellor Angela Merkel take part in a multi-lateral meeting on the sidelines of the G20 Summit in Brisbane on November 16, 2014

Imperial arrogance and buffoonery apart, Putin did meet with German Chancellor Angela Merkel for over three hours. They discussed Ukraine, essentially. No leaks. So Putin met and talked with all the adults that matter: the BRICS and Merkel. There was nothing else to do, business-wise.
In the Russian President’s own words: “It will take nine hours to fly to Vladivostok and another eight hours to get to Moscow. I need four hours sleep before I get back to work on Monday. We have completed our business.”
Oh goodness. That was the cue for Western corporate media go absolutely bonkers spinning the ‘isolated figure’ fled the G20 in shame.
When in doubt, print money
Despite the Anglo-Saxon political gang’s every effort to debase the summit, some – minimalistic - work was done. Even Putin himself hailed the “constructive atmosphere.” More like constructive wishful-thinking atmosphere.
In the final communiqué, a promise was made to increase global GDP by a whopping $2 trillion by 2018. The crux of the magic plan is to facilitate investment in infrastructure, which creates jobs and improves global trade.
By the way, that’s exactly what China has been doing – en masse. China and Russia clinched two humongous gas deals worth $725 billion this year. The $40 billion Silk Road Investment Fund will finance development projects in seven nations across Central Asia. The ‘isolated figure’ has confirmed that Russia’s trade with China and the rest of Asia will rise from 25 percent to 40 percent of Russia’s GDP.
Moreover Russia, China, Iran – and soon other Asian nations – are actively on their way to establish their own currency-clearing systems, independent of the SWIFT system and the US dollar. Russia-China trade and investments are increasingly in rubles and yuan instead of USD. For the buffoons, this is worse than the Apocalypse.
The G20 communiqué also talks about a de facto, renewed neoliberal offensive – from “deregulation” in the markets for goods and services to “flexibility” in the labor market. A hazy global investment hub will be set up in Sydney, but no one really knows how it will work.
The G20 also insisted on the need to combat shadow banking. Pure wishful thinking – as monster shadow players/speculators/outright financial gangsters will prevent it. You’re not seriously going after sewage farms of the “pray to the US dollar, kneel to the Crown” Turks & Caicos kind, are you, boys?
Not surprisingly, every single reference about transparency in extractive industries totally disappeared from the final communiqué. As for climate change, more wishful thinking on “effective action” before the Paris conference in December 2015. Casinos of laundry money could be bet that nothing substantial will happen before or after the conference.
The Wahhabis of neoliberalism obviously derided the attempt by “deadbeat” Argentina to get the G20 to develop a supranational bankruptcy regime. After all, vulture funds of the Paul Singer variety should always be able to act like vultures.
In the end, the ‘isolated figure’ was back to heavy work Monday morning, Moscow time. The EU is set to lose at least 15 percent of $330 billion in trade with Russia in 2015 – while trade among the BRICS will double. The EU’s absolute debacle will continue to be caused to a large extent by neoliberalism. And the diktat by Washington/Wall Street elites that all instances of mixed economy in the EU must be shattered.
While the Fed ends its quantitative easing (QE), the ECB dreams of printing money like crazy, Japan’s Central Bank prints money like crazy and Russia and China buy oceans of physical gold. Under the print money smokescreen, the global economy will keep suffering.
Still, the Russian economy will keep integrating closer with China, Iran and Kazakhstan. The center of global investment and the heart of the action will continue to be – where else? – the Asia-Pacific. No wonder the G20 in 2016 will be hosted by China.
In other news, Pepe Mujica, Uruguay’s former president, did not go to the G20. But let him have the last word. He is stepping out of power. It takes a second to compare his personal dignity, honesty, humility, intelligence, courage, altruism and sound policies with the reckless buffoonery of the Cameron, Harper and Abbott mold.
There are politicians, and ‘politicians’. Fortunately, the overwhelming majority of global public opinion can see right through them.
Credit: www.english.pravda.ru







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