Transnational Capital Exploitation Is The Cause Of Ghana’s Bleeding Economy-SMG

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The Socialist Movement of Ghana (SMG) has stated that, the worsening economic situation in Ghana is as a result of the intensified exploitation of the working people by transnational capital and its local elite supporter.

“Currently, Ghana’s Government is spending more than 90 percent of its total revenue plus grants on debt-serving, debt repayment and public sector emoluments. Last year, the Gross Domestic Product grew at an average of 4.6 percent in the first quarter, contracted to -3.2 percent in the second quarter and shrunk to -1.1 percent in the third quarter”.

This was made known by the General Secretary of Socialist Movement of Ghana, formerly the Socialist Forum of Ghana, Comrade Kwesi Pratt Jnr. during their First National Congress at Winneba in the Central Region.

Presenting the report of the Standing Committee, Comerade Pratt said the total national debt of Ghana under the current NPP Administration has now skyrocketed to Gh¢291.6 billion, representing 76.1 percent of the Gross Domestic Product.

He added that the country is also experiencing serious disruptions of electricity supply, affecting the production levels and productivity of industry.

“The budget deficit is also growing at alarming rate. The effect of these is the draconian measures that the Akufo-Addo administration has taken with devastating consequences for the working people”.

Comrade Kwesi Pratt further disclosed that, since January this year, the price of petroleum products has been increased four times, and the VAT rate also increased and government has imposed a sanitation tax and a banking sector reform tax.

“The people of Ghana continue to suffer elevated levels of unemployment, lack of access to housing, poor infrastructure, worsening health conditions in the face of COVID-19 and significant reductions in industrial output, despite sloganeering, like ‘One-District-One-Factory”.

On the International front, Comrade Pratt averred that, President Akufo Addo government has provided national resources and the legal framework for the establishment of a US military base in Ghana.

“Early this year, the US military carried out military exercises in Ghana and thereby jeopardized the security situation in the country”.