Audio By Carbonatix
Senior policy advisor to the president, Dr. Sulley Gariba says government will not adopt economic models that will not benefit the local economy.
According to him, government is determined to do whatever is required in order to promote indigenous businesses.
Dr. Gariba was speaking on the Super Morning Show on Joy FM, Wednesday, in reaction to Kofi Bentil's criticism of government's resolve to promote the consumption of locally manufactured products.
President Mahama in his State of the Nation Address to Parliament on Tuesday announced some measures to be taken to support local businesses irrespective of political affiliation or social status, as a major approach to transforming the economy.
"In the interim, to kick start this process of transformation, I have tasked the Minister of Trade and Industry to request that the Export Development and Agriculture Investment Fund extend assistance to local investors for increased production of poultry, rice, tomatoes, cooking oil, and fish," the president told the parliamentarians.
"I have specifically tasked them to handle the process in a way as to create a buy-in from all Ghanaians irrespective of political affiliation or societal status. This is not a time to stand divided along any lines; this is not the time to stand on the sidelines; this is the time for us to stand together, as Ghanaians, on the side of Ghana".
But the Vice President of IMANI, Ghana, Mr. Kofi Bentil says it is wrong for government to control what people want to consume. He is of the view that such an approach is not only dangerous but could also lead to a total collapse of the economy.
"Consumption does not follow production...it is what people want to consume that you produce and there is no way anybody has been able to control consumption," he cautioned.
Decisions of such nature taken by previous governments "in the past years ended with total economic collapse", he stated
"Ghanaians want to consume rice period; whether it's from Ghana or it's from elsewhere. So if you find out what people want to consume go and grow it. Until you have done that, please leave people alone!"
In defense of government, however, Dr. Sulley Gariba says government cannot remain aloof in the midst of unimpeded competition from foreign companies to the detriment indigenous industries.
"You cannot simply allow unfettered competition in the blanket application of all the laws of economics. Even in the countries that literally invented the laws of economics, we have seen the very, very serious deep seated crisis in those laws happening in the last decade; with the global financial crisis...we've seen the decisive nature of the state in influencing some of those transactions.
"The meltdown in the US has revealed just how substantial the state has to step in to rescue companies. We cannot sit in Ghana and assume that this tiny country...will blindly go after the rules of economics and not have the state make a decisive intervention to support local producers and to open up market opportunities for them".
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