Accra Mail (Accra)

EDITORIAL

November 8, 2006

Posted to the web November 8, 2006

We recently used a sensational headline (Ghana on a time bomb) for an article we picked from a World Bank (WB) website on the Bank's views about African economies taking loans from China. The article caught our interest because Ghana among others was mentioned. The authors of the article mentioned Ghana as one of those African countries that had by and large cleaned up its foreign debts books and must therefore be careful about contracting more loans, especially from China.

This "friendly advice" coming from a Bretton Woods institution must itself be looked at very carefully so as not to miss out the propaganda element. China is now clearly a giant in the world economy with a GDP bounding into double digits. Many western commentators have been forecasting a meltdown, but the Chinese economy is rather showing resilience and more expansion. Just last week, the Chinese signed a US$2 billion facility for African countries and as we write this editorial Ghana's president John Agyekum Kufuor has been in China with other African leaders deepening their ties with the Chinese.

The Chinese premier recently did a tour of Africa including Ghana in his itenerary. China clearly, is extending a hand of cooperation to Africa. This is a far cry from the Cold War era when China viewed the continent only through the lenses of ideology.

Now it is business. It is therefore up to us to use this new era of cooperation in economic, business and financial sectors to aid our growth. The Chinese have already shown generousity in their relationship with us having been providing aid and grants for the military, for roads and other sectors; the mutual trust that has been engendered must be worked on.

In a sense, China may has become a counter-balance and competitor to the Bretton Woods institutions. Could that be the reason for the "friendly advice"?

Ghana has satisfied all the conditionalities set by the West:

* We are a thriving democracy

* The rule of law operates vigorously

* A free media is on the rampage

* The economy is liberalized with the private sector in the saddle

* Human rights feature high in national affairs and

* Legislation to enhance good governance have been put in place

BUT

Where are the rewards?

Though debt cancellation has brought some relief, where are the foreign direct investments required to take us to mid-income status by the 2015 envisaged by our government?

This and other reasons, mean that we cannot put the proverbial eggs in one basket.

Our government would do right not to ignore "friendly concerns", but it is up to us to determine what is in our best interest.