Professor Godfred Bokpin, Professor of Economics and Finance at the University of Ghana, has indicated that the Change in the Minister of Finance will not have any positive effect on the International Monetary Fund (IMF) sponsored Domestic Debt Exchange Program (DDEP).
He stated that the current Minister of Finance has always been part of the government and has nothing new to contribute to Ghana’s economy.
He argued that the change in Ministers should have been done long ago if the government wanted some changes in the country’s economy. He maintained that the recent ministerial change conducted by the government is geared towards the general elections rather than towards impacting on the economy.
“What we should be mindful of is how we manage the economy as the election heats up, especially the fiscal side. Not only from the central government but also we are looking out for Ministry department agencies and state-owned enterprises. All put together if you adopt a general government approach to accounting for all the debt issues…how we manage that will be fundamental to the future IMF supported program”.
Prof. Godfred Bokpin
Prof Bokpin also indicated that the President failed to address the issues of galamsey and the fight against galamsey in his address. He emphasized that the President’s State of the Nation Address failed to address the current economic issues in Ghana as well.
He stated that contrary to the President’s assertion, the country’s macroeconomic indicators are not in the right direction. He indicated that the implemental progress of government initiatives has not materialized to benefit Ghanaians as the government keeps marking time at “restoring and rebuilding the economy”.
Prof. Bokpin further revealed that the poor performance of Ghana’s economic indicators in the first quarter of 2021 which led to the infamous Domestic Debt Exchange Program (DDEP) has never happened in the history of Ghana. He stressed that the impact of the DDEP and the numerous imposed taxes on the standard of living of Ghanaians must not be underestimated.
“Since I started monitoring data and interacting with people in this country, I have never seen in my life at a time where so many people want to leave this country. Professionals, the slightest opportunity they want to go”.
Prof. Godfred Bokpin
Accordingly, the Economist accused Ghana’s leaders of counting physical projects that do not have any impact on the people of Ghana as achievements. He emphasized the disconnection between physical projects and the impact it has on the livelihood of Ghanaians.
He argued that development in its ideal form must impact people, reflect peace and partnership, improve prosperity, and preserve the planet’s growth.
An Early IMF Bailout
Moreover, Prof. Bokpin specified that positive growth in the GDP does not imply economic relief for Ghanaians. He asserted that the President is aware of the fact that positive GDP growth does not necessarily reflect positively on the livelihood of people.
He stated that the right time Ghana should have opted for an IMF bailout was right after the COVID-19 pandemic. He indicated that Kenya had the same economic issues as Ghana during the period after COVID-19 but is doing better economically because it negotiated for an IMF deal at the right time.
In addition, Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, stated that the IMF deal is poorly negotiated and that attempts should be made by the government to renegotiate the deal. He emphasized that the increase in unemployment is due to the conditionality of the IMF which dictates a total freeze in public sector employment.
“I really listened to the President today and I could not wait for December 7th because he clearly has no magic wand in these last few months, he has no practical solutions, and there is no pragmatic approach. He only acknowledges that we stumbled”.
Hon. Samuel Okudzeto Ablakwa
Moreover, the Member of Parliament argued that Ghana’s self-inflicted economic challenges are a result of unpardonable mistakes committed by the incumbent government. He emphasized that the NDC administration in 2016 did not leave behind an economy afflicted with DDEP and financial haircuts as the current government is bound to leave behind.
The remarks of Prof. Godfred Bokpin and Hon. Samuel Okudzeto Ablakwa followed the President’s State of the Nation Address on Tuesday, 27th February 2024.
The President’s address focused on many sectors such as security, election, economy, digitization and technology, health, and education among many others. The President however failed to acknowledge the unemployment woes that the country has been dealing with in the last couple of years. The address also failed to provide concrete solutions to Ghana’s economic challenges.
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