Does the Ghanaian Cedi have Election Year Blues?

There has been quite a lot in the news lately about the Ghanaian cedi falling to record low levels. It was this tweet from one of my Ghana Tweeps (Twitter-peeps) that got me thinking about the freefalling cedi:

@Kwabena i am no economist but if you paid attention to the cedi in 2000 and 2008, you should know what's going on.#Ghana

So what exactly does happen to the cedi in election years? Thanks to my big brother who introduced me to Oanda and their amazing currency tools, I was able to find out. The graph below shows the value of one US dollar to the Ghanaian cedi from January 2000 to March 2012. Calculations were based on the old Ghana cedi exchange rate since the conversion to the new Ghana cedi took place within this period. The y-axis shows the increase in numeric value of the cedi. At the start of the graph back in January 2000, 1 USD = 2,500 cedis (approximately). By March 2012, the exchange rate was 1 USD to 17,279.4 cedis (1,73 GHS).

Historical Currency Rate (picture is a weird size)
Source: Oanda.com 

Interestingly, Kwabena was right. The cedi did drop in value dramatically in 2000 and 2008 which were both election years. Very curiously, the cedi remained quite stable against the dollar in 2004 which was also an election year. So economist types, please tell me, why does the value of the cedi drop during an election year? In other words, why does the cedi have election year blues?

REPOST: Ghana Politics 101: To avoid unnecessary damage, control your loose cannons

Very recent events in the BAD (Beacon of African Democracy), Ghana, have prompted me to repost this from 2010. Clearly politicians in Ghana never seem to heed advice proffered freely in my lectures for Ghana Politics 101. Maybe they are all taking the course pass-fail. 

Cannons at Fort Antonio in Axim in the Western Region, Ghana
Source:  My personal album of fabulous pics

In military history, cannons transformed the art of warfare and were essential artillery for some key battles dating back to Ancient China. Cannons were also vital to naval combat and the phrase 'loose cannon' alludes to the fact that if your cannons were not secure, they were likely to roll about on deck and cause damage to your ship.  It is not surprising therefore that modern English has adopted the term:

Main Entry: loose cannon

Function: noun

: a dangerously uncontrollable person or thing

Source: Merriam-Oxford Dictionary Online

Over the years, a number of colourful 'loose cannons' have dotted the Ghanaian political landscape. Just like improperly secured cannons, these are usually from one's own armory and cause damage to one's own interests.

Class, the take-home message is simple: if you do not want your political opponents to make mischief of ambiguous statements emerging from your camp, then control your  loose cannons. If you are unable to do so, the ensuing damage could be serious. You would then be forced to field spokespeople who have the excruciating task of explaining the indefensible to the general public. At that point, you just have to hope that the spokespeople are able to use enough circular logic to dazzle the populace and prevent further questions.

Africa Rising: Mrs. Joyce Banda sworn in as President of Malawi

Mrs Joyce Banda
Source: BBC Online

Although largely by default, history has been made today on the African continent. Following the very sudden death of President Bingu Wa Mutharika of Malawi, vice-president Mrs. Joyce Banda was sworn in as President. She is the first female president of Malawi and the 2^nd female President of an African country. 

I must admit that I do not know much about Mrs. Banda. I know nothing about her policies nor do I have a complete understanding of the issues surrounding her acrimonious relationship with the now-deceased former president. However, I do feel a wave of hope and optimism for the African continent that comes purely from a deviation from the norm. I think I have to explain.

African politics is a very male-dominated arena and not only that but it is dominated by males of a certain age and generation. Although their wisdom and experience have added a level of stability to the African continent, some of these learned men have clung to power for far to long leading to stagnation.There is always a need for change. Such a change came in Senegal recently when a relatively young 50 year old Mack Sall was sworn in as President after octogenarian Abdoulaye Wade gracefully conceded defeat in a run-off election. This was after the same President Wade not-so gracefully changed the constitution to allow himself to run for an unprecedented third term in office. 

So winds of change are blowing through the African continent. A Malawian from high school could not have expressed it better on facebook when she said that this Easter has a special meaning as it marks a renewal of hope and rebirth. This can be seen as hope and rebirth not just for Malawi but for the entire continent. 

Next up, can we please have Mrs. Ngozi Okonjo-Iweala heading the World Bank already ?!

I got the (Biometric Voter's Registration) Blues - Observing Ghana go Biometric from a distance

The 2008 Election summed and effectively captured 

Election year is here again in the country I call the Beacon of African Democracy -Ghana. On December 7^th 2012, Ghanaians will go to the polls for the 6^th time since what is known in Ghanaian history as "the return to democratic rule" in 1992. This return heralded a new political era in Ghana known as ‘The Fourth Republic’.  Since the start of The Fourth Republic, the Ghanaian electoral process has gone on successfully although not always so smoothly. Some called the 1992 election a farce but then again there were similar grievances with the 1996, 2000, 2004 and even the 2008 elections.

Ah but who could forget the down-to-the-wire 2008 election? It ended up being the stuff movies are made of…literally. I kid you not. Apparently the behind-the-scenes electioneering of this election are chronicled in the film, An African Election by Swiss-born actor/producer/director of Ghanaian descent - Jarreth Merz.

Being a Ghanaian citizen of age and sound mind (I hope) and having relocated to Ghana almost a decade ago, I have not taken my constitutional right to vote lightly. I was proud to vote in the 2008 election but was shocked at the level of apathy when it came to voting in general. There was apathy from rural-folk living in agricultural communities who felt that regardless of whomever was in power their lives would remain the same. Interestingly, I also observed apathy coming from highly educated urban individuals some of whom arrogantly postured that the 2008 election would be decided by rural folk anyway so they would not bother voting. Hopefully, the newly launched Ghana Decides project and similar initiatives will succeed in getting more of both of these groups involved in exercising their franchise in Election 2012.

Alas I digress. Before I was distracted by Election 2008, I meant to talk about what makes Election 2012 different from other elections conducted under the banner of the Fourth Republic. Well, maybe it is because modern technology is coming to the aid of our never-ending quest for transparent and democratic elections in Ghana. This year, after many calls, the Ghanaian Electoral Commission has decided to adopt a biometric registration process. Interestingly, I blogged about moving to electronic voting in 2009 with a post entitled Mayhem in Akwatia: Isn't Ghana ready for Electronic Voting yet? However, biometric registration and verification is NOT going to mean electronic voting at least not for Election 2012. 

My initial excitement over the introduction of biometric registration turned bittersweet quite quickly. This is simply because I will not be in Ghana for most of 2012 and the narrow window in which biometric registration will take place will not afford me the opportunity to participate. So just like that, I find myself disenfranchised. As if this was not clear already, the Electoral Commission came out recently to reiterate the point that all old voter identification cards will be null and void. 

Since the biometric registration exercise started, I have actively been following the process from a distance via online radio, social media and personal accounts from people in Ghana. At first complaints revolved around lack of information concerning the exercise in general. Later there were reports in the media on attempts to influence the process as well as acts of violence in some parts of the country. However, so far, the biometric registration appears to be going smoothly albeit slowly.

People patiently waiting for biometric registration

Source: JoyFM

Perhaps I am being cynical and a little bit bitter but I can already foresee that by the end of the allocated registration period, not everyone wishing to register will be registered. In the meantime, I will be watching from a distance enviously admiring pictures I've seen of people holding up their new voter cards. I will also keep looking for narrow windows of my own; windows that will allow me to hopefully swing by Ghana to participate in the process. After all, being able to vote for one’s leaders is a privilege that cannot be taken for granted.


P.S. This post also appears on the new website for Ghana Decides, a BLoGHA initiative that employs social media into getting the Ghanaian electorate more informed. The power of social media and technology at work.