Ghana’s economic challenges, including rising public debt, persistent waste and leakages, and slowing GDP growth, require urgent attention from political parties.
Given that it is an election year, parties must provide concrete solutions to address these issues and promote sustainable economic growth through their campaigns and policy manifestos.
Furthermore, parties must prioritize debt management by developing a comprehensive plan to reduce the debt-to-GDP ratio in their policies and manifestos.
This can be achieved through fiscal discipline, transparency in borrowing and spending, and implementing efficient public financial management systems.
Moreover, parties must include effective means of tackling waste and leakages in their policy documents by strengthening institutions and enforcement mechanisms to combat corruption.
As such, political parties must provide reliable practices for implementing efficient public financial management systems, promoting transparency and accountability, and establishing an independent anti-corruption agency.
Accordingly, Franklin Cudjoe, President of IMANI Africa, has cautioned the NDC against complacency, warning that they should not take the 2024 election as a guaranteed victory but approach it with a sense of urgency and rigor, given the country’s economic issues.
Franklin Cudjoe observed that, despite it being an election year, Ghanaians are still awaiting concrete and quantifiable solutions from the major political parties that would substantially reduce the country’s reliance on borrowing and, more importantly, outline a clear strategy to avoid another IMF program in 2026.
“There is a need for the NDC to coordinate and relate the many promises of creating employment and ascertain by an estimated figure the qualitative addition to GDP”.
“IMANI plans presenting brief analysis with the public and media based on objective assessments of how the plans of the major political parties shall impact the country regardless of how extreme the partisan debate develops over the next few days and weeks”.
Franklin Cudjoe
Thus, Franklin Cudjoe emphasized the need for political parties to substantiate their numerous promises with empirical evidence-based solutions that can tangibly impact and transform Ghana’s socio-economic landscape.
Prioritizing Economic Growth Through Diversification
Additionally, political parties’ policies must focus on promoting economic growth by diversifying the economy, investing in infrastructure, education, and innovation, and promoting private sector growth.
This can be achieved through fashioning policies that support entrepreneurship, skills development, and export-led growth.
Likewise, party policies must prioritize fiscal responsibility by implementing a fiscal responsibility law and establishing an independent fiscal council to monitor and advise on fiscal policy.
Political parties must further ensure that their manifestoes include policies that promote economic inclusion, reduce inequality, and implement social protection programs.
Parties must also invest in human capital development through education and training programs, with clear implementation plans and measurable targets.
According to Franklin Cudjoe, IMANI has identified three significant risk factors threatening Ghana’s economy – namely, escalating public debt, persistent waste and leakages, and slowing GDP growth – which political parties ought to address and prioritize in their manifestoes.
“[The risk factors], when combined together, strongly constricts the government’s capacity to sustain investment without unhinging other levers of the economy (‘fiscal leeway’); affects the delivery of projects on time and within budget (spending efficiency); and raises the cost of living”.
Franklin Cudjoe
Franklin Cudjoe pointed out that the negative impact on real incomes and living standards, due to these risk factors, has effectively canceled out the advantages of infrastructure growth, resulting in a ‘growth burden’ that undermines the overall quality of life for many citizens.
As such, Ghana’s economic challenges require urgent attention from political parties. Through their campaigns and policy manifestos, parties must provide concrete solutions to address these issues and promote sustainable economic growth and development.
By prioritizing debt management, tackling waste and leakages, and promoting economic growth, fiscal responsibility, and economic inclusion, parties can demonstrate their commitment to building a prosperous and sustainable economy for all Ghanaians.
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