Street-level realities must inform economic assessment – Larry Dogbey

Managing Editor of The Herald newspaper, Larry Dogbey, has argued that official economic indicators do not always reflect the financial difficulties Ghanaians face in their daily lives.

He said the cost of food, the ability of traders to sell their goods and delays in paying contractors are among the issues that should inform assessments of the country’s economic performance.

His comments come amid a debate over the government’s economic record following New Patriotic Party (NPP) flagbearer Dr Mahamudu Bawumia’s criticism of the disconnect between improving economic indicators and the cost of living.

The former Vice-President described Ghana’s economy as having two contrasting realities: a “paper economy” and a “pocket economy”.

Mr Dogbey said the country’s economic situation could be viewed from two perspectives: the figures presented by political leaders and the conditions people experience on the streets.

“For me, I would even say that there’s a political economy, and then there’s a street economy,” he said on Accra-based Channel One TV's Breakfast Daily show on Tuesday, October 20.

He further argued that market women and other ordinary citizens are better placed to explain whether economic conditions had improved.

“The market women are better placed to tell us whether or not things are better, because at the end of the day, it boils down to bread and butter,” he noted.

Mr Dogbey also compared the exchange-rate situation under the previous NPP administration with conditions under the current National Democratic Congress (NDC) government.

He noted that the cedi had weakened significantly against the US dollar during the previous administration, with the exchange rate approaching GH¢18 to US$1 at its worst point, while current rates were being quoted around GH¢11 to GH¢12 to the dollar.