Dr. Philip Abradu-Otoo
THE DIRECTOR of Research at the Bank of Ghana (BoG), Dr. Philip Abradu-Otoo, has called for both fiscal and monetary policy authorities to remain vigilant and ready to take additional policy measures and structural reforms to improve confidence about the economy so as to sustain economic recovery.
According to him, these will include measures such as the Government’s expenditure control together with new revenue mobilisation measures that would support the fiscal consolidation path and help lift financing constraints.
Speaking at a financial literacy workshop for journalists in the Southern Zone of the country, Dr. Abradu-Otoo said both policies would improve the business operating environment to attract private capital from foreign direct investment and portfolio investment through rule of law, protection of property rights, transparency and accountability.
“In addition, political and macroeconomic stability will contribute immensely to regaining investor confidence,” the BoG man posited.
He indicated that the payment system had been identified as one of the many crucial preconditions that will have to be put in place to foster the building of a strong business friendly environment to boost investor confidence.
“Devising mechanisms to tap in diaspora resources including issuing diaspora bonds to help close any financing gap as far as fiscal policy is concerned. Addressing diaspora investment challenges and creating a conducive and enabling environment that would attract diaspora capital into the sub-region,” he intimated.
He said the Central Bank believes that when these structures are firmly established and institutions are working to deliver their best, together with sound monetary policy actions, these would help to re-anchor inflation expectations, regain macroeconomic stability and restore investor confidence in the economy.
The workshop, organised by the Bank of Ghana, was held on the theme: “Sustaining The Recovery: The Role of the Journalist in Building Confidence.”
He stated that efforts at boosting confidence would have to come from all facets of economic life and urged every institution to play its role.
“In no particular order, the Government must play its role in delivering growth in a stable economic environment, the Central Bank will have to guarantee low and stable inflation using the tools available at their disposal while the private agents must take advantage of conditions around them to drive growth and create jobs.”
“Additionally, the press must leverage all to influence the direction of economic thinking and to influence society by harking back to the IPI cardinal principle of journalism.”
For him, the press must inform, persuade and influence society, by using all available data at their disposal to drive analytical discourse and exude confidence.
“Journalists must go beyond the data provided to them and do more interrogation of the data to understand better, the data generating facts. All these work in concert to engender economic confidence and this is where we ought to be moving towards,” Dr. Abradu-Otoo urged.
BY Ernest Kofi Adu