Prof. Gatsi asks: Pandemic induced mismanagement makes Ghana a candidate for an IMF program?  » Awake News
Home Business Prof. Gatsi asks: Pandemic induced mismanagement makes Ghana a candidate for an IMF program? 

Prof. Gatsi asks: Pandemic induced mismanagement makes Ghana a candidate for an IMF program? 

0 comment 2 minutes read
Ken Ofori Atta and John Gatsi

Generally, countries opt for an IMF program when the economy is under economic and financial distress with the aim of achieving stability.

Senco Homes

The pandemic provided Ghana with opportunities and challenges. There has been expanded expenditure but also quicker access to resources. Weak prioritization of the use of abundant supply of funds created huge fiscal gap. Election related expenditure, travel expenses and National cathedral expenses did not indicate the country was really in distress. Unexplained high borrowing beyond unsustainable levels, entangled the inbuilt resilience of the economy as interest payment burden undermine fiscal prudence. Policy credibility and confidence have been compromised and mutilated .

In 2001, NPP government engaged the IMF for the HIPC Initiative, inherited and extended an IMF program from 2017 to 2019. In 2022 an NPP government has officially requested for an IMF program for the restoration of policy credibility and confidence.

In terms of expenditure and funds related to Covid-19, Ghana experienced positive net benefits as the funds raised were more than the expenditure incurred. So if the fresh and ongoing engagement with the IMF is pandemic induced, then it is pandemic mismanagement.

The intention of government to engage the IMF is to stabilize the economy and learn some basic lessons of prudence and productive expenditure.

All the statements made against going to IMF including only lazy governments go to the IMF and the global economy is in distress cannot change the fact that Ghana has opted for an IMF program.

Though we have global economic challenges, not all countries are going to the IMF due to the pandemic and Russia- Ukraine war. If you are going to the IMF it must be related to the way the pandemic has been managed. Global economic developments are always contributors to economic instabilities that direct countries to the IMF, be it international crude breakdowns, droughts, global financial meltdown, global commodity price collapse etc.

You may also like

Our Company

Awake News is a publication of AM Network established in 2012.

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Laest News

@2024 – All Right Reserved. Designed and Developed by Senyo Global Solutions

Adblock Detected

Please support us by disabling your AdBlocker extension from your browsers for our website.