US-based Ghanaian Economist, Dr. Sa-ad Iddrisu has disclosed that Ghana has not gotten the economic value of the monies borrowed by governments, hence, hindering the progress of the country.
Emphasizing on the deviant practices and mismanagement of resources by the country’s leaders, the economist noted that successive governments in Ghana have only borrowed to waste and not to develop the country.
According to him, until such practices are avoided by the leaders, no amount of money given to the country by the International Monetary Fund (IMF) can remedy the country’s economic problem.
Commenting on Ghana’s Domestic Debt Exchange Programme (DDEP) and the call to IMF for a financial bailout, Dr. Iddrisu averred that without solving the issue of wastage, no proper development will come out of the loans and bonds the country will secure irrespective of the government that is in power.
“Ghana in particular, we only borrow to waste and not develop the country. Until we fix this particular issue, there wouldn’t be any meaningful developmental project that will come out of our loans no matter how much we borrow.
“It doesn’t matter which government is in power because there are projects that were started by Rawlings with borrowed funds and they were abandoned by the government that took over from him. The same thing with Kuffour, Professor Mills, and John Mahama will happen when Akufo-Addo leaves power.”
Dr. Sa-ad Iddrisu
The Economist further stated that: “Ghana is paying huge loans with interest but the country seems not to gain any economic returns from the loans.”
He pointed out to the Sagleme Housing project, indicating that: “money was borrowed to start the project but has been left to rot.”
Dr. Iddrisu expressed belief that Parliament should step in by passing a law that will compel any government to finish the project of his predecessor that was started with borrowed funds.
“It seems we just have an appetite for borrowing just for borrowing sake. So where are we going as a nation if Parliament can’t pass a law that will compel any successive government to finish the project of its predecessor?”
Dr. Sa-ad Iddrisu
Restore Fiscal Reforms, Improve Accounting Standards To Survive Next Economic Crises
Also concerned about the current state of the economy is the Former Finance Minister, Mr. Seth Terkper, who has urged leaders of the economy to restore fiscal reforms, improve accounting and fiscal standards in order to handle the next crises that will hit the economy.
According to Mr. Terkper, the country cannot continue to operate in its current way, else it will not survive the next economic crises.
The former finance minister has called on government for the restoration of links in the fiscal frameworks such as deficits, fiscal balances, borrowing and financing.
“There is the need to address the following fiscal structures: restore fiscal reforms, improve on accounting and fiscal standards and restore credibility of Public Revenue Management Act and Public Financial Management Act with tightening of provisions. That is what I think needs to be worked on to improve the country.
“We cannot operate in an environment where every minister will have a discretion spending as to what to include and what not to include. So, we see credibility as a piece to a structural way of stabilizing the economy. If we keep depleting and then using those funds, we will not be prepared for the next economic crises. And we can’t manage an economy without facing crises.”
Mr. Seth Terkper
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