Political Library: Prof. Mills Economic Era Date: Friday, July 27,2020. Time: 3:30:35pm by Fiifi Annorson

Prof. John Atta Mills Socioeconomic Era

Amongst his accomplishments as president was presiding over and initiating Ghana’s first ever foray into oil production,after oil was discovered in commercial quantities under his predecessor,John Kufuor. He was also credited for growth in other sectors of the economy during his tenure. He was the first incumbent president to be re-nominated for an election for his party via a primary. Some of the monumental achievements chalked during his term of office include:

Economic & Education Background

Under Mills, Ghana’s stable economy experienced sustained reduced inflation leading to the attainment of single digit inflation of about 8.4% (one of the lowest inflation rates Ghana had attained in 42 years i.e. period between 1970 and 2012 as well as the lowest since June 1992 just before the start of Ghana’s Fourth Republic) from a high of 18.1% in December 2008. This is indicative of prudent fiscal, monetary and other austerity policy measures that characterised his presidency to put the economy in healthy shape. The Ghanaian currency, the Cedi also stabilised as a result of these policies. In 2011, Ghana was the fastest growing economy in the world at 20.15% for the first half of the year and 14.4% at the end of the financial year according to the International Monetary Fund and EconomyWatch.com. Moreover, Ghana’s budget deficit was reduced to 2% of the Gross Domestic Product during his tenure compared to 14.5% of GDP in 2008, just before he was elected as the President of Ghana. There was also a huge improvement in Ghana’s gross international reserves and foreign direct investments (FDI) highlighting exceptional macroeconomic performance. The Mills government also implemented the Single Spine Salary system which increased compensation levels of all public sector workers. In a bid to improve the efficiency in revenue collection, Mills established the Ghana Revenue Authority which integrated Value Added Tax (VAT), Customs Excise and Preventive Service (CEPS) and Internal Revenue Service (IRS). Under his governance, Ghana met three out of the four primary convergence criteria for the proposed common currency , Eco of the West African Monetary Zone . These accomplishments led to renewed domestic and foreign investor confidence in Ghana’s economy. During Mills’ time in office, Ghana was adjudged the best place for doing business in West Africa and best West African performer in access to credit according to the 2011 World Bank Doing Business global rankings.

There was also an increase in the capitation grants (government subsidies towards public education) under Mills. The government also introduced a programme to provide free school uniforms to deprived communities while providing over 100,000 laptops or notebooks to school children to facilitate the learning process in a highly technological world. An initiative to provide free exercise books started under Mills. More than 23 million books were distributed. His government also expanded the school feeding programme to include 230 more schools. Government paid the full tuition fees for all teachers pursuing further studies through distance learning. A sustained program involving the Ministry of Education, the GETFUND, and resources allocated by the various District Assemblies have begun to ensure the elimination of schools under trees and provide all schools in the country with decent classroom infrastructure. Out of the 4,320 schools under trees, almost 1,700 schools under trees were eliminated across the country. The Mills administration also started a program to re-equip science resource centres in all districts of the country to enhance the teaching and learning of science. Two new specialized public universities were established during his tenure: the University of Health and Allied Sciences in the Volta Region and the University Of Energy And Natural Resources in the Brong-Ahafo Region . As president, Mills established a working relationship between the Masters in Development Practice program (MDP) at the University of Winnipeg , Canada and the University for Development Studies Ghana, leading to a joint initiative on the study of development practice for Indigenous and traditional societies.

Government, Agriculture, Energy access, Rural development and International Relations.

The Savannah Accelerated Development Authority (SADA) law was passed and work was started to open up the three Northern regions, Brong Ahafo and Volta Regions to enhance agriculture production and industrialisation. Under Mills, the producer price of cocoa increased appreciably to $1600 per tonne of 16 bags, which was the highest in the sub-region and the highest that had ever been paid to cocoa farmers in Ghana’s entire history. Cocoa production also hit a record-breaking 1 million metric tonnes. Under the rural electrification programme, he extended national electricity coverage from 54% to 72% improving livelihoods in 1,700 communities and making
Ghana the third best country in sub-Saharan Africa after Mauritius and South Africa with enhanced energy access.

True to his promise to reduce the number of Ministerial appointees and run a lean government, the number of Ministers was significantly reduced from 87 of the previous Kufuor NPP government to 73 (a reduction of 16%) in the Mills-led government. It was projected that approximately $4 million was saved annually by this bold decision to run a small government. The hundreds of Special Assistants, Presidential Staffers and Spokespersons were also eliminated to improve fiscal efficiency. He commissioned a review of the 1992 Constitution of Ghana in a bid to improve upon the country’s governance architecture. He held an annual media forum every year at the presidency to interact with journalists about socio-political issues.

President Atta Mills re-equipped and re-tooled the security agencies: the military, the police, the fire service, the Immigration, The Prisons Service and the Customs Excise and Preventive Service (CEPS). In order to ensure inter-generational equity because of the “finite nature of resource revenue” as well as financial security for future Ghanaian generations, the Mills government established in 2011, the Ghana Heritage Fund – a sovereign wealth fund generated from petroleum revenue accumulated from the country’s oil and gas industry. John Atta Mills established the Media Development Fund to promote media excellence and freedom in the spirit of 1992 constitution. A few months prior to his death, he was praised by US President Barack Obama for making Ghana a “good news story” that had good democratic credentials. He also
fostered economic ties with China in a bid strengthen Sino-Ghanaian bilateral relations. In 2009, the Journal of International Affairs at
Columbia University featured Mills as one of the “Five Faces of African Innovation and Entrepreneurship” along with South African innovator, Euvin Naidoo and Mo Ibrahim , (founder of Celtel International and Chairman of the Mo Ibrahim Foundation ) where he was lauded for his commitment to strengthening Ghana’s Electoral Commission, National Media Commission and National Commission for Civic Education and more importantly, transparency in public institutions, particularly in the country’s growing oil and gas sector. Mills’ leadership style was very diplomatic, inclusive and less polarising than his predecessors. The BBC described his presidency as that of “a peacemaker who was never one to make disparaging comments in public” despite intense criticisms and vilification from his political supporters and opponents alike.

Published by Rictus Media

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