Finance Minister-designate, Dr. Cassiel Ato Forson, has disclosed his strategy to tackle two of Ghana’s pressing socio-economic challenges: microeconomy for cedi stabilization and sustainable job creation.
The Member of Parliament (MP) for Ajumako-Enyan-Essiam and the current majority leader believes that the missing link to cedi stabilization and job creation is the development of the real sector of the economy, also known as the microeconomy. Dr. Forson explained that the microeconomy for cedi stabilization involves prioritizing tangible economic activities like industries, agriculture, manufacturing, and construction.
He asserted that the real sector holds the key to job creation and strengthening the local currency, emphasizing that this approach is more effective than focusing solely on macroeconomic policies.
The past government, Dr. Forson alleged, overemphasized the macroeconomy, which has led to very little progress in cedi stabilization and job creation. He argued that, unlike the microeconomy, the macroeconomy has limited potential to address these critical challenges effectively.
“When approved, as the Minister of Finance, I’ll dedicate a considerable amount of my attention to the development of the microeconomy for cedi stabilization, focusing on the real sectors of our economy to help create jobs and stabilize our currency,” he committed during his vetting at the Appointments Committee of Parliament on Monday.
He added, “It is important to understand that you do not only grow the economy from the macro; you grow the economy also from the micro. You do not necessarily create jobs only from the macro; you create the jobs from the micro. You do not stabilize the cedi from the macro; you stabilize the cedi also from the micro.”
The real sector, which significantly impacts production, employment, and income generation, has received little attention, with previous governments focusing more on macroeconomic policies such as inflation control, monetary adjustments, and interest rate management. Dr. Forson argued that the microeconomy for cedi stabilization is key to addressing these long-standing issues.
Dr. Forson has, therefore, pledged that if approved, he will prioritize a policy shift towards developing the productive sectors of the economy, hinting at massive structural reforms. “If you want to fix the cedi and you fail to address the structural challenges we face as a country, you will firefight,” he maintained.
This announcement signals possible incentives and reliefs for the business community, creating an enabling environment for a thriving productive economy. The Minister-designate’s promise to dedicate considerable attention to the microeconomy for cedi stabilization could pave the way for a more inclusive and resilient economic future that addresses the ever-falling cedi and high unemployment.
