Director of Labour Research and Policy Institute at the Trades Union Congress (TUC), Dr Kwabena Nyarko Otoo, has revealed that going to the International Monetary Fund (IMF) for financial support will impose needless hardship on Ghanaians.

According to him, previous IMF interventions have not been able to sustainably address the country’s economic challenges. As such, a move of that nature will only worsen the country’s growth. He explained that IMF programmes do not offer “any lasting, durable solutions” to the country’s problems.

Dr Otoo indicated that the programme will “scratch on the edges” of the problem, while the fundamental problem of the country will remain after three to four years of implementation.

“IMF programme as we have always known them will impose needless hardships on Ghanaians, and in the end deliver nothing substantial by way of improving our economic challenges.”
Dr Kwabena Nyarko Otoo

The Director of Labour Research and Policy Institute at the TUC noted that the Fund is not the solution to all the economic problems of the country. Describing the IMF move as unfortunate, he stated that a homegrown alternative will be more prudent to revamp the economy.

“We do not think that the IMF offers us the solutions to the myriad of problems that we face in this country. We have been there 16 times, so going there again is like doing the same things and expecting different results. We think that that shouldn’t be the route we should take. For us, it is unfortunate and it is a tragic mistake on the part of government to unilaterally decide to engage the IMF.”
Dr Kwabena Nyarko Otoo

Call for finance minister to resign

On his part, Information Minister, Kojo Oppong Nkrumah, expressed that the decision by government to go to the IMF after an earlier one to avoid the Fund altogether, does not make the Finance Minister, Ken Ofori-Atta, fall short of the confidence reposed in him by President Akufo-Addo to run the country’s finances.

“If you look at the work that our finance minister has led us to do in the first part before these pandemics hit us, it will not support that argument. Because he was initially of the view that we can do this domestically, he should be fired? I don’t think so.”
Kojo Oppong Nkrumah

Mr Nkrumah opined that in spite of the fact that the Minister made his position on IMF bailout clear, he does not work in a vacuum and that the collective decision of the President may override his conviction. As such, he noted that the opposing arguments for him to be removed from office are not enough basis to warrant such a decision.

It will be recalled that following President Akufo-Addo’s call for engagement to begin with the International Monetary Fund (IMF) to assist and save the country from being plunged into any more difficulties, there have been calls for Finance Minister, Ken Ofori-Atta, to be removed from office.

Many critics including former President John Mahama have called for him to be sacked after claims of the minister running the fiscal space into a crisis. Although civil society organisations called on government to consider the IMF options earlier in the year, the Finance Minister was emphatic that it was not necessary while he expressed optimism about the situation.