Professor Charles Godfred Ackah, Associate Professor of
Economics, Institute of Statistical, Social and Economic Research (ISSER) says
going to the International Monetary Fund (IMF) will not provide sustainable
solutions to Ghana’s economic problems.
He said the economic challenges most of, which were self-inflicted and a
conglomeration of ‘bad luck’ and “bad governance” would require internal
consultations and consensus to fashion out long-term economic agenda for the
nation.
Speaking on an Accra based media platform, the Professor Ackah noted that the
economic challenges of the country such as high inflation rate, the
depreciating cedi and exchange rate, unfavourable balance of trade, high
borrowing, which had led to huge debt servicing and the bloated government size
leading to high current expenditure, had since independence existed due to poor
leadership.
“The problem that Ghana has a far as I am concerned is a structural problem and
the 16 times, we have been to the IMF has not really been sustainable because
they just come to give you some short term ‘steroids’ and after two to three
years you are back to the structural problem” he said.
He added that the recent global disruptions due to covid-19 pandemic and the
Russia-Ukraine War could not be resolved by the IMF.
“As I talk to you now, Japan’s debt to GDP ratio is about 260 per cent and
Japan is not in crisis and they are not going to the IMF. Even the United
States GDP is almost 140 per cent and China is about 70 per cent,” he said.
Mr Felix Ofosu Kwakye, a former Communications Minister and Aide to former
President Mahama, said there was no other option to salvage the worsening
economic situation than to approach the IMF.
The decision of the Government to delay approaching the Fund, he said had
deteriorated the economic situation to the extent that the IMF’s intervention
would not be enough to restore the economy.
He described the delay as a “cheap pedestrian politicking,” which was caused by
the decision of the Government to make political gains out of the decision of
the former President, Mr John Dramani Mahama to approach the IMF in 2015.
“They demonised the IMF and made it looks like they were a bunch of people with
horns and tails wielding pitchforks to force problems down our throat and that
they were never going to go there,” he said.
Professor Elikplimi Komla Agbloyor Kplogo, Associate Professor, Department of
Finance, University of Ghana Business School, said the lack of access to the
International Capital Market, failure of E-levy to generate needed revenue,
decline in foreign exchange reserves, capital flow reversals and the recent
agitations on the streets had pushed government to the Fund.
With or without the IMF intervention, government going forward, he said, would
have to be prudent with its spending and find more innovative ways of
generating revenue.
Source: GNA