A Development Economist at the University for Development Studies, Dr. Michael Adongo Ayamga is expecting the 2022 budget to commit enough resources to address the problem of unemployment.
In an interview on A1 Radio’s Current Affairs Programme, Reporters’ Visit, Friday, November 12, 2021, Dr. Adongo expounded that solving the unemployment challenge was an essential ingredient in restoring confidence in the current economy.
“The finance minister’s job has been laid bare. He has no ambiguity as to what is expected of him; he has to go to Parliament with a concrete plan to rescue the young people of this country. We do know that there are two things that actually keep an economy moving; people’s security about their jobs influence the way they spend and the way people spend affects the way an economy grows and performs. People invest money in an economy based on their confidence that whatever they are going to sell or produce will be bought and they will make profit. If people don’t have jobs in the country, definitely it is going to take a hit on our ability to demand. Even those who have money to invest in our economy will not [do so]. The finance minister must be going to Parliament first of all thinking of keeping confidence in the economy going,” he explained.
Dr. Adongo Ayamga stated that the strength of a country’s economy, in contemporary times, is measured by the consumer confidence of its citizens, in sharp contrast to the old system where it was based on the revenue generated from its natural resources.
He stated that consumers’ lack of confidence in an economy could plunge it into a state of turmoil hence the need for government to address that by creating employment for the youth.
He also advised government to allot resources to equip the youth with skills that will enable them create their own jobs. He urged government to pay particular attention to NABCO trainees whose engagement with government just ended. He said government should devise a plan of assisting the trainees with entrepreneurial skills as a means of curbing the unemployment problem.
Touching on the numerous strike actions that have occurred in the country this year, the economist sent a word to government to make sure the budget addresses the concerns raised by the various parties.
He observed that most labour unions have resolved to suspend their strikes presently with the anticipation that their demands such as better conditions of service and better remuneration, among others will be addressed. He warned that government’s failure to address the concerns of workers in the budget, would mean more industrial actions against government by the unions.
Touching on the concerns about the prices of petroleum products, Dr. Adongo Ayamga explained that though government can reduce taxes, the options available for it to generate enough revenue for development are limited thereby making it difficult for it (government) to do so.
He said the lack of investor confidence in the economy means it will be hard for government to seek support from donor countries to facilitate development. Dr. Adongo Ayamga was quick to add that he does not expect government to add more taxes as the citizens are already overburdened.
Source/a1radioonline.com/101.1mhz/Elijah Beyeni Yenibey/Ghana
