Business24 Newspaper 5th July, 2021 by Business24 Online

MONDAY JULY 5, 2021

Ghana’s auto market projected to hit US$11bn in 2026 See page 2

Cocoa constitutes half of Ghana’s EU exports See page 2

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Ghana’s auto market projected to hit US$11bn in 2026 By Benson Afful affulbenson@gmail.com

hana’s automobile market has been projected to reach a value of US$11bn by 2026, strongly underpinned by the emergence of global vehicle manufacturing giants setting up plants in the country. The projection, by a Stanbic Bank research report, implies a compound annual growth rate of 15 percent over the next six years, after the market was valued at US$4bn in 2020. “We expect a growth in [vehicle] sales of 8.3 percent this year due to the strong expected economic output over the same period and low base effects due to a forecasted strong decline in sales in 2020,” the report said. Following the government’s implementation of an automotive development policy to attract investment into the sector, car makers such as Volkswagen, Toyota and Suzuki have all set up local assembly plants, with plans to export locally-assembled vehicles to the West Africa market.

According to the report, with these major vehicle manufacturers expressing interest and making significant investments in opening and operating vehicle assembly plants in the country, Ghana has

the potential to become a regional vehicle supplier. The automotive sector is currently dominated by retailers of imported pre-owned cars and new-car dealerships.

It is estimated that every year, Ghana imports over 100,000 vehicles, costing US$1.5 billion, about 15 percent of its total import bill.

Cocoa constitutes half of Ghana’s EU exports By Benson Afful affulbenson@gmail.com

he Head of the European Union (EU) Delegation to Ghana, Diana Acconcia, has said cocoa represents about 50 percent of the country’s total exports to the union, with

almost half of the cocoa products processed. Speaking to manufacturers at a forum in Accra, Ms. Acconcia said the EU was Ghana’s secondlargest trading partner last year, adding that the trade relation Ghana has with the EU is quite different from others.

She explained that Ghana is able to export most of its cocoa products into the EU processed as a result of the investment the union has made in the country’s manufacturing sector, which has also created jobs for the youth. She said although most of Ghana’s trade is currently outside

the African market, with the start of the African Continental Free Trade Area (AfCFTA) agreement, the country is now rightly focused on the African market. However, she pointed out that the EU market remains important for Ghana’s quest to boost exports. “The fact that Europe is the first importer of food in the world, including Africa, is good potential for Ghana, especially now that the Economic Partnership Agreement (EPA) has fully been implemented, making it easier for Ghana to get complete duty-free access to the European market.” The implementation of the interim Economic Partnership Agreement (iEPA) between the European Union and Ghana took off last week. This means the EU market will accept goods from Ghana on the duty-free quota-free access policy, whilst the country also liberalises access to its market for 80 percent of the total volume of EU exports.

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AGI Prez calls for incentives to boost manufacturing By Patrick Paintsil p_paintsil@hotmail.com

hana’s industrial sector needs sound fiscal policies that motivate and improve the competitiveness of local manufacturers to ensure their sustainability and survival, says Dr. Yaw Adu-Gyamfi, President of the Association of Ghana Industries (AGI). Speaking at the inauguration of Wilmar Africa’s US$30m detergents plant in Tema, he noted that the fast-moving consumer goods (FMCG’s) sector is under pressure and stiff competition from imported products that have flooded the domestic market, forcing some investors to move their operations to neighbouring countries. “Competitiveness is critical to the survival of every business in Ghana today, and if we’re able to reduce the cost of doing business and get Ghanaians to patronise locally-made goods, that’s the only way we can become competitive,” he said.

“We will need to further improve our business climate in order not to be displaced by competitors in the single continental market and the global economy,” he added. Dr. Adu-Gyamfi suggested that government should explore the possibility of creating a special

incentive regime to bolster local manufacturing, citing how a structured incentive approach in the automobile sector has seen the establishment of three assembling plants of top carmakers in the country. Also, in the quest to promote industrialisation, government

must make every effort to bring down the cost of electricity, he added. “Job creation is a major challenge today as we continue to churn out more graduates yearly. The industrial sector holds a key role in creating the needed jobs for the teeming unemployed youth. With all our efforts put together, we’ll make the industrial sector of Ghana great and create sustainable jobs for the future,” he argued. Wilmar Africa’s new detergents plant will help bridge the demand and supply gap in the soaps and detergents market—with national demand estimated at 100,000 metric tonnes. The factory will provide about 220 jobs and boost government’s efforts at import substitution, especially in a sector with local capacity for value addition. Ghana imported soaps and detergent products worth US$40m last year as increased awareness about personal hygiene and care has driven up demand for household cleaning products.

Ghana Commodity Exchange plans trading in cash crops By Eugene Davis ugendavis@gmail.com

he CEO of the Ghana Commodity Exchange (GCX), Tucci Goka Ivowi,

has said the exchange plans to trade in cash crops and to go international in its next phase of development. The exchange presently trades in grains only within Ghana and

has 10 warehouses across the country. “We have started with grains so far, but we need to build the requisite infrastructure, and then we can start to trade

in commodities like veggies [and] fruits, which have a lot of demand,” said Mrs. Ivowi at a press briefing in Accra on Sunday organised by the Ministry of Information. She added that the exchange has formed strategic partnerships with funding organisations for the aggregation of selected commodities in its warehouses. These include the state-owned Venture Capital Trust Fund, which is providing a GH¢5m facility, and Rural Development Fund Ghana (RDF Ghana), which has established a GH₵1m credit line for soy and maize aggregation, with the potential to increase the amount to GH₵10m to fund other commodities and brokers. In addition, FBN Bank has agreed to extend a GH₵6m facility to pre-finance aggregation of cashew as well as train networked farmers about the exchange’s operations. Mrs. Ivowi said the exchange is open to more public-private partnerships and plans to expand to other markets, starting with Ghana’s landlocked neighbours.

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Editorial

AfCFTA requires local producers to step out of their comfort zone

hanaian industrialists and exporters have a ready market within West Africa but they would need to look beyond this comfort zone as continental trade picks steam. It’s no doubt that the success or otherwise of Ghana production sector and private sector, as a whole, in the AfCFTA market hinges on their competitiveness, in terms of quality, cost of capital and power as well as a trade facilitating environment. The business community, governmental agencies and other industry-specific stakeholders have a critical role to play in this regard. But much of the work hangs on traders and producers who may want to push their goods

onto the continental market. It is not therefore surprising that the Association of Ghana Industries (AGI) has aptly tasked its members to adopt and implement the right systems that could drive their participation and trade beyond the West African market—which they already have a strong hold of. Standardisation is another area that producers would have to pay attention as it will be a key criterion for market acceptance of their goods. Fortunately, there are a good number of local manufacturers that are producing goods that meet ISO certifications, which is good for our cross-border trade especially those goods

will compete with similar or like products from some of Africa’s production superpowers. “When you’re promoting exports, you don’t bring every producer and try to push all of them to a stock; you look for those with the enthusiasm and capacity to produce goods that meet the standard of the destination markets,” the association’s chief executive, Seth Twum Akwaboah, suggests. We side with this recommendation of the AGI on the need for a structured and targeted approach to promoting exports under the AfCFTA which will ensure that both the nation and direct local actors in the AfCFTA could fully optimize the market.

African Development Bank launches new economic governance strategy

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he African Development Bank has launched its Strategy for Economic Governance in Africa (SEGA) aimed at fostering transparent and accountable governments and institutions to secure inclusive, sustainable development. The strategy proposes bold reforms in the management of public finances to eliminate revenue ‘leakages’ and ensure an efficient, productive, and transparent use of scarce resources. The paper comes amid the ongoing Covid-19 pandemic, which has exposed African countries’ weak public financial management and service delivery and vulnerability to exogenous shocks. “This event comes at a crucial time as African countries look to recover from the crisis caused by the Covid-19 pandemic. It is difficult for Africa to take off without transparent and accountable governments and strong institutions capable of driving a prompt, sustainable and inclusive recovery and ensuring economic resilience,” said Vera Esperança dos Santos Daves, Angola’s Minister of Finance at the virtual launch of the strategy, attended by government

ministers, and representatives of the private sector, academia and international institutions. In a speech read on her behalf by Secretary of State for Treasure and Finance, Dr Ottoniel Santos, the minister described the Strategy as "a milestone." “We are very delighted that it will contribute to promoting public sector effectiveness at national and subnational level, thus stimulating structural transformation in our throughout the continent, and ensuring that our people participate in public sector governance,” she said. SEGA also proposes tougher anti-corruption measures in the

public and private sectors. This includes the establishment of systems to monitor and hold governments accountable for the delivery of public service and the elimination of corrupt practices. "The African Development Bank is itself uniquely positioned to implement this new strategy, building on its unparalleled knowledge and understanding of the African context, and also on the Bank's credentials in the area of good governance," said Swazi Tshabalala, the African Development Bank’s acting Senior Vice President. GNA

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Fruits, vegetables & protein remain out of reach of many Africans –report

frica's agri-food systems must be transformed to make healthy diets more affordable for Africans, the Food and Agricultural Organisation (FAO) has said. The FAO in a report launched together with the UN Economic Commission for Africa (UNECA) and the African Union Commission (AUC) said Africans face some of the highest food costs when compared to other regions of a similar level of development. “Nutritious foods, such as fruits, vegetables and animal proteins, are relatively expensive when compared to staples such as cereals and starchy roots, and, the report argues, some of the reasons for this are systemic,” the Africa Regional Overview of Food Security and Nutrition report said. The report shows that nearly three-quarters of the African population cannot afford a healthy diet of fruits, vegetable and animal proteins, and more than half cannot afford a nutrientadequate diet, which provides a mix of carbohydrates, protein, fats, and essential vitamins and minerals to maintain basic health. It added that even an energysufficient diet, which supplies a bare minimum of energy and little else, is out of reach for over 10 percent of the continent's population. "The picture that emerges is that the agri-food systems in Africa do not provide food at a

cost that makes healthy diets affordable to the majority of the population, and this is reflected in the high disease burden associated with maternal and child malnutrition, high bodymass, micronutrient deficiencies and dietary risk factors," FAO Assistant Director-General and Regional Representative for Africa Abebe Haile-Gabriel said with William Lugemwa UNECA's Director of the Private Sector Development and Finance Division, and Josefa Sacko, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment in the report's joint foreword. "A common vision, strong political leadership and effective cross-sectoral collaboration, including the private sector, are essential to agree on tradeoffs and identify and implement sustainable solutions to transform agri-food systems for healthy, affordable diets," they said. ‘Unacceptably slow' progress on ending malnutrition Overall progress in meeting global nutrition targets remains unacceptably slow in Africa, according to the report. SubSaharan Africa is the only region in the world where the number of stunted children continues to rise. Although the prevalence of stunting is declining, it is falling only very slowly and despite

progress, nearly a third of the children in sub-Saharan Africa are stunted. Only three countries, Eswatini, Kenya and Sao Tome and Principe, are on course to meet four of the five World Health Assembly nutrition targets. Three other countries, Ghana, Lesotho and Rwanda, are on track to meet three of the targets. The report also states that current food consumption patterns in Africa impose high health and environmental costs, which are not reflected in food prices. Including these costs would add US$0.35 to each dollar spent on food in sub-Saharan Africa. Rebalancing diets to include more plant-based foods would reduce the cost of diets and lower health and environmental costs. Compared to current average diets, diets that are more plantbased would reduce the full cost of diets, including health and environmental costs, by 11-21 percent in low-income countries.

Transforming agri-food systems for affordable, healthy diets The findings highlight the importance of prioritizing the transformation of agri-food systems to ensure access to affordable and healthy diets for all, produced in a sustainable manner. Smart policies and interventions throughout agrifood systems are needed to raise yields, lower costs, promote nutritious foods, and reduce health and environmental costs. Within the African context, essential interventions include increased investment in research and extension to improve yields, especially of nutritious foods, and greater efforts to adopt modern farming technologies. Production must be intensified in a sustainable manner, the report argues, along with interventions to improve land governance, empower women farmers, reduce post-harvest losses and improve market access.

Standard Chartered hands over brand-new vehicle to top winner great service and and assure her of full aftersales of ‘Season of Surprises’ promo continuous cap it all with a sleek vehicle is support from Silver Star.

tandard Chartered Bank Ghana has awarded the top winner of the “Seasons of Surprises” promotion with a brand new sleek Citreon C5 Aircross vehicle. The overall winner, Ms. Margaret Yeboah, drives home an immaculate vehicle after emerging top in the 3-month campaign that was launched to reward the bank’s clients. The campaign was launched in December 2020 through March 2021, to treat the bank’s customers to exciting gifts including 60-second shopping sprees at various supermarkets and free fuel for customers with cars from the end of the year through the 1st quarter of 2021 following the difficulty of COVID-19. Speaking at the grand finale

ceremony, Yvonne Gyebi, Head Consumer, Private and Business Banking said: “As we fete Ms. Yeboah today and mark the end of the Season of Surprises campaign, we have once again reminded our customers that banking with Standard Chartered is not only seamless and convenient but rewarding. I therefore urge all our clients to participate in future campaigns such as these and welcome potential clients to sign up on SC Mobile.” On her part, the winner, Ms. Margaret Yeboah, thanked Standard Chartered for feting her and continually providing cutting edge and seamless banking services to the convenience of many clients. “I have been a client of SCB for many years and to experience

a dream come true. Standard Chartered has mastered the art of keeping its clients happy and I am truly grateful,” she added. Over the years, and as a testament to its brand promise ‘Here for Good,’ Standard Chartered has delighted customers to thrilling campaigns that give for the sake of giving and as well as present customers the chance to win rewards and prizes that keep them excited even in the face of the pandemic the world now faces. Congratulating the ultimate winner Asad Nazir, CEO, Silver Star, said It is a pleasure to have partnered with Standard Chartered for the “Season of Surprises” promotion and congratulated the winner of the Citroën C5 Aircross SUV

“We also salute Standard Chartered for this wonderful promotion and for setting a good example of rewarding loyal customers”. “For those who did not win, Standard Chartered Bank Ghana PLC has a very attractive financing package for Silver Star Auto Customers, meaning we can all be winners”, he added. “Our giving doesn’t stop here. Our latest campaign which launched in May 2021, “Bank More, Score More” will see one lucky Standard Chartered Bank client winning an all-inclusive trip for 2 to Anfield, United Kingdom to watch Liverpool FC play live while many more clients could win exclusive Liverpool FC merchandise,” noted Yvonne.

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Firms advised to reduce reliance on banks for finance By Henry Martinson

usinesses must reduce their reliance on banks for funding and consider other sources of finance to support their operations, Paul Ababio, Deputy DirectorGeneral in Charge of Finance at the Securities and Exchange Commission, has observed. Speaking to Business24 in an interview, he said there are other avenues whereby especially small and medium enterprises can raise long-term capital for their business operations and expansion. “If you look at our financial market, businesses have been heavily reliant on the banking sector. One may say that our venture capital space is nascent, but that is also a source of long-term funding for small businesses.” He added that the government is currently reforming the Venture Capital Trust Fund to strengthen its operations and enable it support more businesses and the growth of the capital market. Commenting on Ghana’s

investment outlook, Mr. Ababio said “Ghana has a stable democracy, and our economy is strong and robust. Some economies shrank during COVID–19, but Ghana continues to grow.”

He added, though: “We have a very high cost of borrowing, and a big part of it comes from the communication of how our market operates and of our expectations as well. Sometimes we have very high expectations,

but the reality is that business itself has natural challenges and we have to appreciate that and ensure that the communication is done to create the avenues for appropriate investments.”

MultiChoice extends Talent Factory application deadline

n response to incessant request for more time from young filmmakers, the administrators of the MultiChoice Talent Factory have extended the closing date for the submission of applications. Prospective applicants have up till the 16th of July to fully submit their applications on the MultiChoice Talent Factory website. About 60 students (20 for each region) will be selected from 13 African countries where MultiChoice operates for the year-long programme that will commence in October 2021. Launched in May 2018, as part of MultiChoice Africa’s groundbreaking corporate shared value (CSV), the initiative aimed at igniting Africa’s creative industry through TV and filmmaking. Today the MTF Academy officially announced the muchanticipated Call to Entry to all emerging filmmakers from 13 African countries with either some industry experience or a relevant post-school qualification

in filmmaking to apply for this exciting opportunity to hone their television and film production skills under the guidance and mentorship of industry experts. Only 60 students will be selected to be part of the soughtafter year-long and fully-funded programme at three academy hubs located in Southern Africa (Lusaka, Zambia), East Africa

(Nairobi, Kenya) and West Africa (Lagos, Nigeria). As part of the programme, young filmmakers are provided with training and hands-on experience in the film industry, with a focus on storytelling, production, audio and directing and other key areas. The academies also provide students with an opportunity to

learn directly from well-known leading industry experts, work on live sets of local TV productions and create original content that will be aired on various local M-Net channels across the MultiChoice platforms DStv, GOtv and Showmax. So far, MTF Academies have exposed the previous cohorts to real-life industry immersions, which include the music reality show Coke Studio, Pambio, TurnUp and the popular Swahili telenovela Selina. Other projects the students worked on include the United Nations Covid-19 Public Service Announcements and on the set of the thrilling series Battleground, The Johnsons, Tinsel and Flatmates. The students also had the opportunity to gain hands-on experience on SuperSport shows and pitch their final-semester film projects to Africa Magic and Mnet. Interested applicants must visit cte.multichoicetalentfactory.com before 16 July 2021 and follow the steps to enter.

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USA-GHANA-Stronger Together

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Message by U.S. Ambassador to Ghana Stephanie S. Sullivan

reetings and happy Fourth of July! We have much to celebrate this year, as we are turning the corner on COVID-19 thanks to mitigation measures and extraordinary science that produced vaccines in record time. The United States is proud to rejoin the World Health Organization and to lead the global COV-

ID response as the largest contributor to COVAX, the global vaccine delivery program. The Fourth of July marks the anniversary of our nation’s birth and calls to mind milestones in U.S. history. This year, I’m delighted to share noteworthy anniversaries of key institutions that reflect U.S. values and that have shaped the

U.S.-Ghana bilateral relationship: the Fulbright Program, the U.S. Agency for International Development, and the Peace Corps. The oldest of these is the Fulbright program, which is celebrating its 75th anniversary this year. Created in the aftermath of World War II, the Fulbright Program reflects our commitment to peace-

ful relations among nations. This flagship international academic exchange program, sponsored by the U.S. government, has fostered mutual understanding between the United States and other countries since 1946 and in Ghana, since 1958, just one year after independence.

Ambassador Sullivan with President Akufo-Addo and Ghana and U.S. officials at her credentialing on January 23, 2019 Since its inception, over 400,000 Fulbrighters from the United States and 165 countries have studied, taught, and conducted research in each other’s countries while promoting international understanding and collaboration as participants and alumni.

We’re proud that today, the Fulbright Program legacy is represented by hundreds of thousands of distinguished and diverse alumni, who are contributing to a more peaceful, equitable, prosperous, and just world. The Fulbright Program has a long record of achieve-

ment in promoting diversity and inclusion and of striving to ensure that its participants are fully representative of society in the United States and abroad. For 75 years, and 63 years in Ghana, the Fulbright Program has given hundreds of passionate and

accomplished students, scholars, teachers, and professionals of all backgrounds and fields, the opportunity to study, teach, exchange ideas, and contribute to finding solutions to complex global challenges.

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In November 2019, Ambassador Sullivan hosted a classical music concert by Fulbright scholar Dr. Cristina Ruotolo and her students. Dr Ruotolo has been teaching at the University of Ghana in the English Department since August 2018 I want to turn next to the anniversary of the U.S. Agency for International Development – USAID. For 60 years, USAID has been the world’s leader in international development. USAID demonstrates American generosity, and has a long-standing history and reputation of partnering with countries around the world, including Ghana, to achieve longterm, sustainable development to improve the lives of individuals and communities. By helping Ghana’s small-

holder farmers to increase agricultural production, and generating employment opportunities for women and youth, USAID has spurred economic growth. By addressing the socio-economic needs of the marginalized and poorest citizens, USAID has supported Ghana’s efforts to promote peace and regional security. And by its continued commitment to help Ghana reach its self-reliance destination, USAID has improved accountable governance and strengthened institutions.

As we wrestle with the second year of the global pandemic, we’ve built on our decades of support and seen the U.S.-Ghana bilateral partnership grow even stronger. To support Ghana’s COVID-19 response, USAID has provided nearly $30 million to address the immediate and medium-term effects of the pandemic on the health, agriculture, and education sectors, and to support the hardhit private sector. These investments and commitments build

on USAID’s steadfast partnership with the Ministry of Health and others. Longstanding health partnerships and investments in Ghana, including through the Global Health Security Agenda, the U.S. President’s Malaria Initiative, and the U.S. President’s Emergency Plan for AIDS Relief, have provided the technical expertise and strengthened the critical health infrastructure needed to boost preparedness and respond rapidly to control the pandemic and save lives.

Arrival of the first COVAX vaccines in Ghana on February 24, 2021. This year, we also celebrate the 60th anniversary of the Peace Corps. This is an important milestone in the U.S.-Ghana relationship, as Ghana was the first country in the world to receive volunteers in 1961. Peace Corps reflects the best of the U.S. spirit of service and volunteerism – and I’m not just saying that as a former Volunteer myself. More than 240,000 Americans have served in 141 countries to work with communities and create lasting change in areas such as education, health, and agriculture. Close to 5,000 Americans have served across the length and breadth of Ghana as education, health, environment, and small enterprise development or agriculture volunteers. Both our countries greatly value this dynamic relationship. A key Peace

Corps goal is bringing the world back home to the United States. Our volunteers return home with a new perspective, appreciation, and understanding for other languages, cultures, and peoples that we share with our fellow Americans. Promoting better understanding of Americans to Ghanaians, and of Ghanaians to Americans, benefits our two countries and has strengthened the ties between us. Volunteers’ work has changed over the years in response to evolving development challenges. For example, Ghana has benefitted from deaf and hard-of-hearing volunteers who teach deaf students and build the capacity of local school staff in Ghanaian Sign Language. This work complements the Minister of Education’s goal to move into inclusive

education where deaf and hardof-hearing students can share a classroom with hearing students. Regardless of the nature of the challenges, Volunteers are highly effective working at the grassroots level — in communities throughout Ghana and with organizations that work to improve the lives of Ghanaians. We look forward to resuming that work with Volunteers, whom we hope will return by the end of this year after last year’s worldwide evacuation due to the pandemic. We’re proud of the longevity of the U.S. relationship with Ghana, dating back to Ghana’s own independence on March 6, 1957, when we established diplomatic ties, and as illustrated by the anniversaries I’ve shared with you today. But, more than that, we’re grateful for the friendship between the

people of the United States and the people of Ghana. This enduring friendship is rooted in our shared histories and our shared vision of a prosperous world at peace, fortified by strong democratic institutions, a generosity of spirit, and a society that works for all citizens. As President Biden has noted, we have always been a forward-looking nation, one still striving toward a more perfect union. Five years from now—July 4, 2026—will be the 250th anniversary of the United States’ independence. On July 4 of this year, we begin the celebration with our partners at the America250 Foundation and invite all Americans, as well as our friends abroad, to help honor our past and shape our future. Happy 245th Independence Day!

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U.S. government leads COVAX facility contributions, bolstering the Covid-19 response in Ghana

nder the dire circumstances of this pandemic that has taken such a heavy toll on the world, the United States is grateful that Ghana is now better equipped to combat the virus. We welcomed the arrival of 600,000 doses of COVID-19 vaccine through COVAX on February 24, 2021. On that day, I joined the Minister for Health, Kwaku AgyemanManu, UNICEF and WHO country representatives, as well as Ambassadors of the UK, EU, Spain, and Italy to witness the delivery at Kotoka International Airport. This shipment was the first globally under COVAX, a global initiative to support equitable access to COVID-19 vaccines, and was the first of millions more doses expected to arrive in Ghana this year. Based on the principles of equity, transparency, and common humanity, COVAX is a global solution to a global challenge. Bilateral donations of vaccines will not be sufficient or fast enough to end this pandemic. As such, the United States is leading by example as the largest contributor to COVAX, already having provided $2 billion and pledged an additional $2 billion in funds to Gavi in support of the COVAX Advance Market Commitment (AMC). This week, on April 15, the U.S. Secretary of State Antony Blinken and Gavi are hosting the Gavi COVAX AMC One World Protected Launch Event with more than 100 contributing and beneficiary nations. His Excellency President Akufo-Addo was invited to participate in this important forum that is galvanizing the global community and industry to give generously to COVAX so that we can ensure global vaccine cover-

age. Proven safe and effective vaccines are our most effective tool in combating the pandemic, and the United States is proud to support COVAX, which uses only vaccines that have been rigorously tested and proven to be safe and effective. The COVID-19 pandemic has demonstrated that an infectious disease outbreak anywhere is a threat to people everywhere. This pandemic is one of the most pressing challenges to the health, well-being, and economic security of our time, and the global community must unite to end it. We have entered a new phase in the fight to end the pandemic. While it seemed highly impossible a year ago, unprecedented partnerships between governments, nongovernmental organizations, academia, and the private sector have brought several WHO-authorized safe, effective, and life-saving COVID-19 vaccines to market, with more pending approval. U.S. investments in COVAX support the purchase and delivery of safe and effective COVID-19 vaccines for the world’s most vulnerable and at-risk populations in 92 low- and middle-income countries. This support is critical to controlling the pandemic, slowing the emergence of new variants, and helping to restart the global economy. Global access to COVID-19 vaccines is critical to reduce the tragic loss of life, to control and end the pandemic, to mitigate the ongoing health and economic impacts, and to keep people safe across the globe. The United States is committed to collaborating with partners, governments, and the private sector to support global

COVID-19 vaccination efforts and to ensure COVAX’s success. We are pleased to join Ghana’s Ministry of Health and partners in the international community to fight this pandemic together. The United States has worked closely with Ghana since the start of the pandemic and has contributed more than $4.6 million and reallocated an additional $19 million to further aid the COVID-19 response in Ghana, in addition to U.S. contributions to COVAX. To support Ghana’s COVID-19 response, the U.S. Agency for International Development (USAID) has supported the Ministry of Health to train health workers in COVID-19 critical care and to disseminate social and behavior change messages to increase knowledge and awareness around COVID-19, including increasing the number of people who receive the COVID-19 vaccine and deliver life-saving supplies and commodities across the country. In addition, the U.S. Centers for Disease Control and Prevention have provided critical technical assistance to strengthen contact tracing, surveillance, and laboratory activities. The U.S. Department of Defense has coordinated donations of personal protective equipment and medical supplies to aid frontline health care workers as well as testing supplies to increase Ghana’s testing capacity. The United States also facilitated the Ghana Armed Forces redeployment of one of the two U.S.-donated state-of-the-art peacekeeping field hospitals into a COVID-19 treatment facility. And recently, the U.S. government’s Power Africa initiative supported the electrification of 65 health facilities in the Ashanti region with solar power, enabling

the facilities to operate at night, diversify their services, and ensure a vaccine cold chain that extends into rural areas. The United States Government has also made a $3.5 billion dollar contribution to the Global Fund specifically for the COVID-19 response, of which Ghana will soon access up to $70 million to address the pandemic. These investments and commitments build on a long tradition. Over the past two decades, the United States has provided more than US$140 billion in global health assistance. We are the world’s largest contributor to the international response to COVID-19. Additionally, the U.S. private sector has been generous, throughout the world and here in Ghana, where American Chamber of Commerce members like Coca-Cola, Newmont, Kosmos Energy, Mastercard, and many other U.S. firms have donated equipment, meals, and financial resources to bolster the Ghanaian government’s efforts to stop the virus. Longstanding health partnerships and investments in Ghana, including through the Global Health Security Agenda, President’s Malaria Initiative, and the President’s Emergency Plan for AIDS Relief, have provided the technical expertise and critical infrastructure needed to bolster preparedness and rapidly respond to COVID-19 to control the pandemic and save lives. The United States is also committed to working with Ghana and our partners the world over as we lead the global response to the COVID-19 pandemic and launch a sustained and inclusive recovery.

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U.S. supports Ghana’s aviation sector

n June 30, 2021, the U.S. Trade and Development Agency announced grant funding for a feasibility study to support the development of a maintenance, repair, and overhaul (MRO) facility at the Kotoka International Airport (KIA) in Ghana. U.S. Ambassador to Ghana Stephanie S. Sullivan presided over the ceremony and was joined by members of the government of Ghana, grantee representatives from the Ghanaian company Aerojet Aviation Ltd and U.S. company Alton Aviation

Consultancy, as well as industry leaders. The feasibility study is a critical foundation before implementation of the project, which would establish the first full-service MRO facility in West Africa. No matter how minor or complicated the repair, airlines must repair their aircraft at a certified MRO in order for the aircraft to return to service. In addition, scheduled preventive maintenance must be completed by a certified MRO facility on every aircraft in active service. MRO facilities on the Afri-

can continent only represent approximately four percent of the global MRO market, with no MRO facility in West Africa. This study builds on previous USTDA feasibility study support in 2009, 2011, and 2012 to undertake enhancements at Kotoka International Airport. “Having an MRO at KIA presents Ghana with the opportunity to propel itself into the position of an even stronger regional and global leader in the aviation sector and boost regional economic growth, safety, security, and mobility,” said Ambassador

Sullivan. The grant is provided to the Ghanaian company Aerojet Aviation Limited, and the U.S. aviation experts Alton Aviation Consultancy LLC will conduct the feasibility study. This activity supports the Prosper Africa initiative, a U.S. government initiative to substantially increase two-way trade and investment between the United States and Africa. It also supports President Biden’s Build Back Better World initiative to apply U.S. technologies and equipment to help with COVID-19 recovery.

U.S. Ambassador to Ghana supports “Green Ghana Day” U.S. Ambassador to Ghana Stephanie S. Sullivan planting a tree in support of “Green Ghana Day” on June 11, 2021.

n June 11, 2021, U.S. Ambassador to Ghana Stephanie S. Sullivan commemorated “Green Ghana Day” by planting a Lignum Vitae tree on the U.S. Embassy grounds. The chosen tree is commonly referred to as the “tree of life” or “wood of life,” due to its traditional medicinal use as a remedy for arthritis and coughs. Ambassador Sullivan also launched a tree nursery at the Embassy for indigenous and

non-native species to contribute to our collective efforts to reforest Ghana with rich and diverse trees that provide vital products and amenities, including quality habitat for wildlife, biodiversity of plant and animal communities that form a vital part of the ecosystem, and recreational opportunities. During the event, Ambassador Sullivan appreciated the initiative of His Excellency President Nana Akufo-Addo, along with the

enthusiasm of Minister for Lands and Natural Resources Hon. Samuel Abu Jinapor, for highlighting the critical need to restore Ghana’s forest cover and to reduce the amount of carbon dioxide emissions in the atmosphere. The U.S. Embassy looks forward to working with Ghanaians to support policies and programs that restore and conserve forests and water bodies, stop illegal logging, mining (galamsey), fishing (Illegal, Unreported, Unregulated

[IUU] fishing) and plastic pollution. “Prompt reforestation is critical. The goal of 5 million trees set by the Government of Ghana is an ambitious but necessary one, so we must all do our part, one tree, or many at a time. I strongly encourage Ghanaians to embark on restoring Ghana’s forest cover, repair degraded landscapes, and protect water bodies.” – U.S. Ambassador to Ghana Stephanie S. Sullivan

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USA-GHANA-Stronger Together

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American private sector Covid-19 support to Ghana

Coca-Cola Ghana donates 3,000 packs of beverages to frontline workers in support of the fight against COVID-19 spread

Cargill executives with Hon. Carlos Kingsley Ahenkorah MP (2nd left), then Deputy Minister of Trade & Industry

Newmont Ghana Ahafo Mine Donates PPEs to the Brong Ahafo Regional Hospital

ATC Ghana Donates US$100,000 to the Noguchi Memorial Institute for Medical Research

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Special Feature

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LG OLED TVs rollout in key markets

G Electronics, a leader in OLED TVs, is raising the bar again with new LG OLED models led by two new art-inspired GX Gallery series 4K Ultra HD TVs, 77 and 65-inch class. The new LG OLED TVs – and new 8K and 4K LG NanoCell LCD TVs – are designed to deliver stunning picture quality and innovative design with upgraded performance and artificial intelligence-enabled features that bring movies, sports and video games to life like never before imagined. At the heart of the latest 8K and 4K LG OLED and 8K LG NanoCell TVs are a number of advanced core technologies, most notably the new α (Alpha) 9 Gen 3 AI Processor. This advanced processor leverages upgraded processing power and artificial intelligence deep learning algorithms to improve on LG’s renowned picture quality and enable a host of specialized features for various types of content including movies, games and sports, taking the user experience to new heights. LG’s premium TVs flaunt unique, elegant designs that integrate effortlessly with any home decor. The all-new minimalist Gallery Series takes design to a whole different level with an ultra-thin form factor – the 65-inch model is a mere 20 millimeters (0.79 inches) thin. Paired with an included speciallydesigned wall mount, these 65 and 77 inch class models hang completely flush on the wall, providing a dramatic appearance, transforming the OLED into a piece of art. The LG OLED ZX Real 8K models, delivering four times more detail than 4K TV and 16 times more than HDTV, exceed the strict requirements established by the Consumer Technology Association’s (CTA) official industry definition for 8K Ultra HD TVs. The 88- and 77-inch LG OLED models also surpass the measurement criteria recommended by the International Committee for Display Metrology and are among the first to earn the new CTA 8K Ultra HD logo. The LG NanoCell TV lineup is highlighted by six Real 8K TV models (75- and 65-inch models in Nano99, Nano97 and Nano95 series), all exceeding the stringent requirements needed to display the official industry 8K UHD logo from CTA.

Ultimate cinema experience

Ultimate game experience

Combining OLED’s selfemissive technology and absolute blacks with support for Dolby Vision IQ and the UHD Alliance’s new Filmmaker Mode™, LG OLED TVs bring the cinema into the living room with new levels of realism. With Dolby Vision® ultra-vivid high dynamic range imaging, Dolby Atmos® immersive sound, and for the first time ever, Dolby Vision IQ, LG OLED TVs deliver a truly spectacular videoaudio experience. Dolby Vision IQ introduces new intelligent features for TVs to deliver optimal picture quality as the creative intended, no matter the ambient light environment or content genre. The new Filmmaker Mode, supported by Hollywood’s leading directors, delivers images the way they intended. By disabling certain post-processing effects (such as motion smoothing, noise reduction and sharpening) while perfectly preserving correct aspect ratios, colors and frame rates, LG OLED TVs with the Filmmaker Mode faithfully replicate the original vision of the director. LG OLED TVs also have been recognized by Hollywood Professional Association with its Excellence in Engineering Award as the first and only with integrated hardware-level calibration software, further solidifying LG’s OLED TV as Hollywood’s leading reference consumer display for use in content production. LG’s award-winning webOS smart TV platform will bring LG OLED and LG NanoCell TVs a plethora of programming from the constantly-growing number of top global content providers through apps and services such as Disney+, Netflix and CBS All Access.

With stellar picture quality and newly added gaming features, LG TVs are ideal for serious gamers, delivering the most seamless, immersive big-screen gaming experiences available anywhere. As the first TV manufacturer to offer NVIDIA G-SYNC® Compatibility, LG is expanding this capability to 12 OLED TVs to provide a flawless PC gaming experience without screen tearing or other distracting visual artifacts. With unparalleled variable refresh rate and ultra-fast response time, LG OLED TV is considered the most advanced gaming TV on the market today. With the extremely low input lag of expensive desktop gaming monitors, detail-packed visuals of today’s games are simply jaw-dropping on LG OLED TVs. And the smoothness and responsiveness of controlling the onscreen action has to be experienced to be believed. In another industry-first, LG OLED TVs feature the HDR Gaming Interest Group’s HGiG Mode so gamers can enjoy high quality visuals as game creators and developers intended when playing HDR games via consoles on their LG TVs. HGiG is a body made up of companies from the game and display industries that develops standards to improve the HDR gaming experience for consumers. During intense gaming sessions, LG OLED TVs even help address eye fatigue. The Eye Comfort Display certification, from the trusted international testing lab TÜV Rheinland, verifies that LG OLED TVs offer adjustability for blue light content, are flicker-free, and provide exceptional image quality from any angle. LG OLED screens meet every TÜV testing

criterion, including wide color gamut and HDR. Ultimate sports experience Not only ideal for film buffs and gamers, LG OLED TVs are perfect for sports fans, too, offering exhilarating viewing experiences courtesy of the 120Hz response time – made possible by the new α9 Gen 3 AI Processor – and sports-centric features. Sports Alert helps users to keep track of their favorite teams and schedules and notifying them as soon as a team scores. Users can select their favorite teams in various sports – soccer, football, baseball, etc. – to receive automatic updates at the start of a match, whenever a team scores and when the game ends. Sports fans can also benefit from enhanced sound. Viewers can connect the TV to Bluetooth speakers to create a more dynamic soundscape to create a real stadium environment. “LG’s vision to offer outstanding value to its customers comes to life this year with the company’s new lineup of art-inspired TVs,” said Mr. Mike Ahn, General Manager, Home Entertainment TV Division, LG Electronics West African Operations. He said beyond the unrivaled picture quality that LG’s premium TVs deliver, the new additions also come with the company’s advanced technologies, best in AI-integration and unrivalled, futuristic design made possible by OLED technology.” LG is again pushing the innovation envelope by bringing the ultimate picture to a TV screen size that is much more approachable. Now even more consumers will be able to experience the superior performance of LG OLED TVs, considered to be the most advanced gaming TV on the market today.

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News

MONDAY JULY 5, 2021

Tecno aims to sell 5,000 pieces of Phantom X by end of July By Eugene Davis ugendavis@gmail.com

obile phone manufacturer Tecno, has set its sight on selling up to 5,000 pieces of its Phantom X device by end of the month, the Branch Manager Tecno Mobile, Northern Sector, Opoku Daniel has said. Tecno has focused its business on the African and the South Asian markets over the past 15 years and with sales shooting up by a billion dollars in 2020. “For July we are expecting to sell not less than 5,000 pieces. We hope that people will come and buy and they will send word of mouth to motivate others to come on board,” he told Business24 in an interview during the launch of the phone. The Chinese brand which has its presence in over 60 emerging markets across the world is keen to leave a footprint in Ghana and Africa given the widespread mobile telephony on the continent. “We want the elite to experience something different -- its quality. We know what Africa wants so we

did it for them. Phantom X isn’t just an innovative high-end smartphone; it empowers the modern extraordinary individuals’ way of life being bold to reject the ordinary, always strive for success and have the ambition to achieve new heights. Holding this spirit, we aim to continually make breakthroughs in product and design innovations as we have delivered through the Phantom X.”

Device Just like the Phantom 9, the Phantom X has an in-display fingerprint reader with quick face unlock for bio-authentication and runs on an improved 12nm MediaTek Helio G95 chipset coupled with Mali G76 GPU. The Phantom X also packs 8GB of RAM and 256GB of onboard storage and runs on HiOS based on Android 11. The device is also powered by a 4700mAh with 33W fast-charging support with connectivity

options including Wi-Fi, 4G LTE, GPS, FM Radio and Bluetooth. It comes in two artistic colours; Van Gogh’s Starry Night and Monet’s Summer. The device was launched on Friday, July 2, 2021 at the Grand Arena – Accra International Conference Centre, Accra-Ghana. It was officially unveiled by TECNO brand ambassador Stonebwoy who was later joined by his friends in the music industry to thrill the audience at the post-launch party.

Second India – Ghana Foreign Office Consultations held in Accra

he 2nd India-Ghana Foreign Office Consultations (FOC) was last week held in Accra. Rahul Chhabra, Secretary from Indian side and Mr. Kwaku Ampratwum Sarpong, Deputy Minister of Foreign Affairs from the Ghanaian side co-chaired the Meeting. Both sides undertook a comprehensive review of the entire gamut of bilateral, regional and international issues of mutual interest. The cochairs took stock of exchange of bilateral visits, holding of Joint Commission Meeting, bilateral trade & investment, development partnership, capacity building, defence cooperation, security related issues, people to people linkages, pending MoUs, regional, and global issues. Both sides agreed to take steps to enhance the depth and momentum of engagement which would be to mutual benefit. Both sides noted with appreciation their cooperation on Covid-19

related issues, including donation of 50,000 Covid Vaccines by India to Ghana as a gesture of friendship & solidarity and 6,00,000 Covishield madein-India vaccines under COVAX initiative. Ghana noted with appreciation the visit of Minister of State for External Affairs, Mr. V. Muraleedharan from 6-7 January, 2021 to attend the inauguration of President Akufo-Addo for his second term as President of the Republic of Ghana. Relations between India and

Ghana are traditionally warm and friendly and these relations are further gaining momentum with frequent high level visits and interactions from both sides. Bilateral trade has been growing at a healthy rate and recorded about US$ 4.5 billion in 201819 though in 2019-20 trade has declined to US$ 2.4 billion on account of low import of gold by India. India has extended developmental assistance to Ghana worth over US$500 million under Lines of Credit and

additional amount of US$ 500 million under Buyers Credit for various projects, including the iconic Presidential palace, TemaMpakadan railway line and India-Ghana Kofi Annan Centre for Excellence in ICT. India also continues to extend capacity building support to Ghana with scholarships for University education, Fellowships for research and skill and human resource development under ITEC including e-VBAB. An MOU for Cooperation between India’s Global Centre for Nuclear Energy Partnership (GCNEP) and Ghana Atomic Energy Commission (GAEC) to facilitate human resource development and capacity building for further developing and strengthening the technical capabilities of the GAEC. The MOU was signed by Mr. Rahul Chhabra, Secretary(ER) from Indian side and Prof. B.J.B. Nyarko, Director General of GAEC from the Ghanaian side.

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Set sail on a new journey to start a new chapter By H.E. Lu Kun, Chinese Ambassador to Ghana

uly 1st, 2021 marks the 100th anniversary of the founding of the Communist Party of China. H.E. Xi Jinping, General Secretary of the Communist Party of China (CPC) Central Committee, Chinese President and Chairman of the Central Military Commission, declared at the Ceremony that through the continued efforts of the whole Party and the entire nation, China has realized the first centenary goal of building a moderately prosperous society in all respects. This means that China has brought about a historic resolution to the problem of absolute poverty in China, and China is now marching in confident strides toward the second centenary goal of building China into a great modern socialist country in all respects. After the Opium War of 1840, China was gradually reduced to a semi-colonial, semi-feudal society and suffered greater ravages than ever before. To save the nation from peril, the Chinese people put up a courageous fight. A variety of plans were devised to ensure national survival, but all of these ended in failure. With the salvoes’ of Russia’s October Revolution in 1917, Marxism-Leninism was brought to China. Then in 1921, as the Chinese people and the Chinese nation were undergoing a great awakening and Marxism-Leninism was becoming closely integrated with the Chinese workers’ movement, the Communist Party of China was born. The founding of a communist party in China was an epoch-making event, which profoundly changed the course of Chinese history in modern times, transformed the future of the Chinese people and nation, and altered the landscape of world development. This country is its people; the people are the country. The Party has always represented the fundamental interests of all Chinese people; it stands with them through thick and thin and shares a common fate with them. The Party has no special interests of its own—it has never represented any individual interest group, power group, or privileged stratum. Since the very day of its founding, the Party has made seeking happiness for the Chinese people and rejuvenation for the Chinese nation its aspiration and mission. Over the past hundred years, the Party has united and led the Chinese people in enduring

great hardships, achieving great success for socialism with Chinese characteristics in the new era. The Chinese nation has achieved the tremendous transformation from standing up and growing prosperous to becoming strong, and that China’s national rejuvenation has become an irreversible historical inevitability. The Party was chosen by history and the people. On the journey ahead, The firm leadership of the Party must be held. The Communist Party of China is committed to continuously working to promote the building of a human community with a shared future. Peace, concord, and harmony are ideas the Chinese nation has pursued and carried forward for more than 5,000 years. The Chinese nation does not carry aggressive or hegemonic traits in its genes. The Party cares about the future of humanity, and wishes to move forward in tandem with all progressive forces around the world. China has always worked to safeguard world peace, contribute to global development, and preserve international order. The Communist Party of China will remain committed to promoting peace, development, cooperation, and mutual benefit, to an independent foreign policy of peace, and to the path of peaceful development. We will work to build a new type of international relations and a human community with a shared future, promote highquality development of the Belt and Road Initiative through joint efforts, and use China’s new achievements in development to provide the world with new opportunities. The Party will continue to work with all peaceloving countries and peoples to promote the shared human values of peace, development, fairness, justice, democracy, and freedom. We will continue to champion cooperation over confrontation,

to open up rather than closing our doors, and to focus on mutual benefits instead of zero-sum games. We will oppose hegemony and power politics, and strive to keep the wheels of history rolling toward bright horizons. Chinese are a people who uphold justice and are not intimidated by threats of force. As a nation, China has a strong sense of pride and confidence. China has never bullied, oppressed, or subjugated the people of any other country, and China never will. By the same token, China will never allow any foreign force to bully, oppress, or subjugate us. Anyone who would attempt to do so will find themselves on a collision course with a great wall of steel forged by over 1.4 billion Chinese people. Enhancing unity and cooperation with Africa has always been high on China’s diplomatic agenda. China and Africa fought shoulder to shoulder in the great struggle to win independence and uphold dignity. We have partnered with each other in pursuit of economic development and better lives for our peoples; and we have supported each other on issues that are important to our core interests and are of major concern to us. Despite rapid changes in the international landscape, ChinaAfrica friendship has remained rock-solid and as strong as ever. Ghana is among the earliest countries in sub-Sahara Africa to establish diplomatic ties with China. Just as H.E. President Nana Addo Dankwa AkufoAddo once said, Ghana-China cooperation is a model of AfricaChina cooperation. Politically, our two countries maintain close interactions. We are the pilots of China-Africa friendship. In September 2018, President Nana Addo Dankwa Akufo-Addo paid a state visit to China and held bilateral talks with President Xi Jinping. The two leaders delineated the blueprint of the

future China-Ghana relations. Economically, the economy and trade exchange between China and Ghana has been flourishing. We are the pilots of China-Africa cooperation. China is Ghana’s biggest trading partner and foreign investment source. In 2020,our bilateral trade volume reached 8.5 billion USD, a year-onyear increase of 13.6%. The Chinainvested airline, power plant, steel company, ceramic company make a significant contribution to creating jobs and promoting developments in Ghana. The China-aided National Theatre, Cape Coast Stadium, University of Health and Allied Sciences in Ho, 1000 boreholes bring benefits to a large amount of Ghanaian people. Since the outbreak of Covid-19 pandemic, China was the first to dispatch charted flight to Ghana with assistance. China donated many health supplies such as masks, ventilator, disinfectant, diagnosis equipment, and living supplies such as nutrition and rice. The China-Ghana traditional friendship was greatly consolidated in the united fight against the pandemic. A century ago, at the time of its founding, the Communist Party of China had just over 50 members. Today, with more than 95 million members in a country of more than 1.4 billion people, it is the largest governing party in the world and enjoys tremendous international influence. Today, a hundred years on from its founding, the Communist Party of China is still in its prime, and remains as determined as ever to achieve lasting greatness for the Chinese nation. Looking back on the path we have travelled and forward to the journey that lies ahead, it is certain that with the firm leadership of the Party and the great unity of the Chinese people of all ethnic groups, we will achieve the goal of building a great modern socialist country in all respects and fulfill the Chinese Dream of national rejuvenation.

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The right advice for the pandemic recovery

Koichi Hamada

s long as there is no major uptick in inflation, central banks would do well to sustain their expansionary monetary policy, but with the goal of supporting effective – and coordinated – fiscal-policy interventions. In other words, the world needs to follow the late Richard Cooper's sound counsel. NEW HAVEN – Last year, I lost my teacher, friend, and most valued research colleague, and the world lost a brilliant economist. Richard Cooper was one of my supervisors when I was pursuing my Ph.D. at Yale. As a doctoral candidate, I benefited from a veritable “dream team” of economists, each of whom enriched my life and work tremendously. James Tobin pushed me toward deep and creative insights with empirical relevance. Edmund Phelps sharpened my analytical skills. And Cooper made sure that I applied my ideas to policymaking, so that they would have a realworld impact. For that, I will be forever grateful. Cooper led by example: his work examined the interdependence of countries’ economic policies. He developed his ideas mainly within the Keynesian framework, in which fiscal policy is the primary policy tool, and showed how carefully planned international coordination of fiscal policies would improve outcomes for everyone. Notably, Cooper developed the “locomotive theory,” according

to which the United States, Germany, and Japan – the three “locomotives” – would “pull” the global economic train to safety following a recession in the 1970s. The theory was put into practice at the G7 summit in 1978. Inspired by Cooper’s work, I proposed a similar approach to monetary policy, drawing on Harry Johnson’s monetary approach to the balance of payments, where central banks’ policies are the tools and inflation targets are the guiding objectives. Given the interdependence of the global monetary system – then operating under a regime of fixed exchange rates – policy coordination among countries was essential to maintain stability. After the Bretton Woods system collapsed in 1971, this approach was no longer appropriate, as Jeffrey Sachs and others pointed out. Under a global system based on flexible exchange rates, a laissez-faire approach to monetary policy was the right one. Even without the need for coordination, however, macroeconomic policy remained interdependent, with a crucial difference. With fixed exchange rates, an increase in macroeconomic stimulus in one country would call for a reduction of stimulus in its main trading partners. With flexible exchange rates, by contrast, monetary expansion in one country should be met with monetary expansion elsewhere, though on a smaller scale than in the first country. SUBSCRIBE NOW This is a wisdom Japan

failed to internalize. After the US investment bank Lehman Brothers collapsed in 2008, triggering a global financial crisis, the US, the United Kingdom, and the eurozone expanded their monetary bases enormously – a policy that weakened their respective currencies. But the Bank of Japan, under Governor Masaaki Shirakawa, failed to expand its monetary base in line with its counterparts. As a result, the yen appreciated significantly, and Japan suffered a much sharper economic downturn than the countries at the epicenter of the crisis. Jeffrey Frankel has cautioned about precisely this type of “coordination confusion.” Then, in 2013, then-Prime Minister Shinzo Abe appointed Haruhiko Kuroda as the new BOJ governor. Kuroda implemented aggressive quantitative easing (QE), like his counterparts at the other advanced-economy central banks, and the Japanese economy began to recover. Between 2012 and the beginning of the COVID-19 pandemic, Japan’s economy added about five million new jobs. (In a 2014 commentary, Cooper and his co-author, Richard Dobbs, praised this approach, noting that “if central banks had not acted decisively to inject liquidity into their economies, the world could have faced a much worse outcome,” before urging countries to prepare for the end – or continuation – of QE.) After 2016, the link between Japan’s monetary base and the yen exchange rate (relative to the US dollar) – captured in

the so-called Soros Chart – was broken, and the effect of the BOJ’s monetary expansion weakened. But the rule of monetary-policy interdependence in a flexibleexchange-rate system remained unchanged – and Japan had learned its lesson. So, during the pandemic, when the US again ramped up monetary expansion, the BOJ followed suit, expanding Japan’s monetary base significantly. To be sure, amid ultra-low and even negative interest rates, the link between monetary bases and exchange rates remains impaired, so monetary expansion alone will not be enough to deliver a strong and sustained economic recovery. But expansion was essential to ensure that Japan was not left behind. The challenge now is to devise a recovery strategy that recognizes the implications of today’s global economic interdependence. Such a strategy must acknowledge that this era of secular stagnation has blurred the division between monetary and fiscal policy. Moreover, it should account for the fact that, though exchange rates are flexible, common inflation targets among the major economies limit the likely scale of currency fluctuations. This means that, as long as there is no major uptick in inflation, central banks would do well to sustain their expansionary monetary policy, but with the goal of supporting effective – and coordinated – fiscal-policy interventions. In other words, the world needs to follow Cooper’s advice.

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