"My government is determined to reduce deprivation as much as we can within the term of four years"
President Kuffour is determined to eradicate poverty
At a time when unemployment rates (20.3%) and inflation rates are high, Kuffour’s economic policies promise to eventually reverse the economic stagnation that threatens the Ghanaian economy. During his first term, the president cut inflation and borrowing costs; this was achieved by declaring Ghana a HIPC country in 2001. As a result of this declaration, Structural Adjustment Programs (SAPs) implemented by the IMF reduced Ghanaian foreign debts to more manageable levels (reduced by $5.96 billion). Foreign investments were also encouraged as a result of IMF control over the Ghanaian economy; this introduced more foreign currency into the economy and helped stabilize the local currency (the cedi is now stable at 4.7% against the dollar).
Efforts are currently being made to improve the education system that was almost destroyed during the Rawlings regime. Government subsidies have also improved the working conditions of farmers; the agricultural contribution to the Gross Domestic Product (GDP) has increased as a result. On the down side, the IMF SAPs required the government to remove all subsidies on oil prices. This has lead to a 60% increase in oil prices that threatens to inflate the prices of all commodities in the economy. But Ghanaians are comforted by Kuffour’s economic policies that are currently making great strides in improving wages and prices; they are hopeful of a brighter economic future.
