In particular it accused ‘some TUC officials’ of abusing trade union principles in trying to influence government policy under the threat of industrial action over the matter and of simply protesting against change that might lead to the loss of some jobs, without waiting to see the terms of the proposed sale arrangement. The Hon. MP advised that policy issues in the management of the economy should not be settled in an atmosphere of pressure and agitation.

Ghana TUC finds it necessary to respond to the views expressed by Hon. J. H. Mensah in order to clarify for the discerning Ghanaian public its position on the important policy question of the sale of 48% of the shares of ADB to Standard Bank of Africa/Stanbic Bank.

In the first place, while agreeing that questions of policy should not be resolved on the basis of emotions, with respect, we think the Hon. MP got it completely wrong when he suggested that policy issues have nothing to do with political agitation and nationalism. This is because in the view of Ghana TUC issues of policy are political and may, where need be, require political agitation. Policy issues are political and involve making choices which have differential implications for different social groups in our society. This is especially so when in many cases policy issues are determined in favour of vested interest groups and not necessarily to promote the public interest. Again, nationalism, that is a policy perspective that seeks to promote the national interest, is in our view a legitimate consideration in making policy choices.

Now to address the substantive arguments of Mr. J.H. Mensah : The Honourable MP correctly notes that the need to transform agriculture and not simply make profits was the sole purpose of establishing the ADB and that without a substantial improvement in the productivity of our farmers, we can forget about Ghana’s economic ambitions. Again, he correctly observes that the substantial majority of rural farmers need to be equipped with tools and technology far superior to the present cutlass and hoe technology. According to the Honourable MP, to be able effect the transformation of agriculture, the ADB should have at its disposal today not US$66 million, its current net worth, but some US$250 million and that at its current growth rate, the ADB will not attain that stature for decades to come. A sale of the Bank of Ghana’s stake on the stock exchange (as some propose) will not address the need for substantial additional resources, as such sale will only bring about a change in ownership of shares without introducing new resources. What is at stake and what is required in the interest of the farming community and the operators of small scale and medium scale industry throughout Ghana is the reorganisation of the of the ADB so that it will have more strength to serve them.

Thus, so the argument goes, what is required is a strategic investor that would promote the raising of additional resources for ADB to carry through its mission of transformation of Ghanaian agriculture. According to Hon. J.H. Mensah what we should be focusing on is how resources can be raised by the sale of newly-issued shares in the ADB to Ghanaian investors on the stock exchange and that Ghanaians will be confident to invest in such new shares if they can be assured that ADB’s future will be in the hands of a strategic investor.

A close analysis of the statement issued by Mr. J.H. Mensah, however, shows that it is unfortunately a position based on unexamined assumptions and a huge dose of lack of confidence in the Ghanaian.

In the view of Ghana TUC, if the expectation of agricultural transformation, which is critical for our economic progress, is to be hinged on a strategic foreign investor, then God save Ghana !

In the first place, the question that needs to be asked is what has government done over the years to raise the necessary additional resources for ADB to service the millions of rural farmers and small-scale industry as a development bank ? It is necessary that the Honourable MP first give Ghanaians an answer to this question before suggesting the option of a strategic investor as the only viable solution.

Secondly, Mr. Mensah’s belief that it is only when Ghanaians see a foreign investor in ADB that we shall have enough confidence to patronise the purchase of newly-issued shares regrettably betrays a subservient attitude to the magic of the foreign investor and a lack of confidence in Ghanaians. Ghana TUC finds this most disappointing in a politician and economist of the Honourable MP’s standing. We are of the view that the recent highly successful issue of new shares through the stock exchange by such a wholly-Ghanaian owned company as Ghana Commercial Bank (GCB) provides indication that Ghanaians do not need such a foreign strategic investor in order to invest in an otherwise profitable business.

The view of the Ghana TUC is that, if what is critical for ADB to meet its historic mission is adequate financial resources, then what should be done is to transform ADB into a public company by listing it on the stock exchange and raising the necessary financial resources through the issue of new shares. Neither the NDC government in the past nor the NPP government today has attempted this obvious first step. Yet, Mr. J.H. Mensah wants Ghanaians to believe that only by selling the Bank of Ghana’s shares in ADB to a ‘strategic foreign investor’ will there be a beginning of the resolution of the problems facing agricultural transformation in Ghana. In our view, this is too simple a solution to the problems of agriculture in Ghana, which is beset by manifold problems, not the least of which is unfair competition from imported agricultural products that enjoy subsidies at home.

In the view of Ghana TUC, such a fundamental policy issue as the transformation of agriculture as a foundation for Ghana’s economic development cannot be addressed from the limited perspective of sale of ADB to a foreign investor. What is required is a comprehensive national policy for the transformation of the agricultural sector. Such a national policy in our view can be meaningful if it is adopted after extensive discussion and debate on the fundamentals of the policy, the strategic objective and the timelines from year to year for various targets. It is only within that framework that the role of a transformed and better resourced ADB can be meaningful.

Mr. J. H. Mensah takes issue with Ghana TUC and the management and staff of ADB for objecting to the sale of ADB to a strategic foreign investor even before negotiations about the detailed terms of the reorganisation of ADB has started. But that is precisely the problem : the secrecy in governmental processes on important policy matters, even though the Constitution guarantees citizens the right to information as a fundamental human and political right of the people. It is amazing that the Honourable MP does not see anything wrong with the fact that the government has not informed Ghanaians on its policy decision on the reorganisation of ADB, but is busy negotiating with possible strategic investors.

What ought to have been done, in conformity with Government’s accountability obligations to citizens, should have been first to open up debate on the policy question of the future of ADB and its reorganisation within the larger framework of government agricultural policy, come to a policy decision on this matter after full and extensive discussion and publicise this policy decision, so Ghanaians can meaningfully react to it in an informed manner. Where, as in the current case, everything is shrouded in secrecy, Ghanaians have every reason to fear that the public trust and interest may be sacrificed on the altar of the private sectional interest of members of government and their collaborators in the private sector. As all Ghanaians are only too well aware, this would not be the first time that the public interest is sacrificed for private gain amidst high-sounding economic argumentation.

Indeed, the particular experience of privatization of state enterprises since the 1980s is replete with many transactions that have not measured up to the demands of accountability and the public interest. The privatization of the Tema Shipyard and Drydocks, Ghana Telecom, of government shares in Ashanti Goldfields, now Anglo-Gold Ashanti), to mention a few notable examples, provides sufficient reasons for the Ghanaian public to be suspicious of the attempt to sell the Bank of Ghana’s 48% shares in ADB to a foreign investor, especially when government is refusing to inform Ghanaians as to the framework for such sale. This is particularly the case when regard is had to the fact that any strategic foreign investor in agricultural financing will be motivated above everything else by considerations of profit and not so much the overall welfare of agriculture and our farmers.

Be it noted that notwithstanding the mass privatization of state enterprises since the mid 80s, the current relative stability and growth that we are witnessing can be directly linked, not to the role of foreign direct investment, but to the huge inflows of official development assistance, debt relief, remittances from Ghanaians living abroad and the highly favourable producer prices for gold and cocoa in recent years. It needs in this connection to be emphasised that it is not foreign investors that are going to be the real transformatory force in Ghana’s economy. It is the people of Ghana themselves. The foreign investor can play only a complementary role not the leading role. Any policy that is predicated on the leading role of foreigners in our efforts at economic transformation, such as the perspective proposed in Hon. J.H. Mensah’s statement of 17th August 2007 is historically doomed to failure. Nowhere has it happened in the world, and it certainly will not happen in Ghana.

If Stanbic or any other so-called strategic investor wishes to invest in financing agriculture they are welcome to set up their own bank for that purpose. This will introduce beneficial competition into this sector of banking to the benefit of our farmers.

As regards the anomaly of Bank of Ghana being at one and the same time regulator and shareholder, it does not in our view pose any fundamental practical economic problem as the ADB is an entity separate and distinct from the Bank of Ghana and its board and management. It is only those who see themselves religiously beholden to implementing World Bank/ IMF prescriptions that see this as a fundamental obstacle in the way of the Bank of Ghana playing its statutory functions.

For the avoidance of doubt, let the record reflect that Ghana TUC has not threatened industrial action over this matter. The trade unions and Ghana TUC, however, have the constitutional right, like any other person or group, to express their opposition to any government policy they consider inimical to the public interest through lawful demonstration and protest marches and this is what the Tema District Council of Labour has done.

Ghana TUC reaffirms its considered viewpoint that no compelling reasons have been advanced to date why the sale of Bank of Ghana’s shares in ADB to the strategic foreign investor is the way forward for Ghana’s agricultural transformation. The statement issued by Honourable J. H. Mensah, far from addressing the major concerns of Ghanaians only scratches at the surface of the strategic policy framework for transformation of agriculture in the interest of millions of small-scale farmers and the national economy. In the circumstance, we consider it our responsibility to the good people of Ghana, particularly farmers, to demand that government suspend its decision to sell Bank of Ghana’s share in ADB to a strategic foreign investor and rather open up a debate on our agricultural policy and the future of ADB, long-term and medium and short-term. This will ensure that policy decisions that have long-term implications for our farmers and nation are taken after full consideration of all relevant issues and viable options, and not simply because the World Bank/IMF so dictate.

KWASI ADU-AMANKWAH, Secretary General, September 20, 2007