Political Science lecturer at the University of Ghana, Prof Ransford Gyampo, has taken a swipe at the International Monetary Fund (IMF), describing it as no long bold and perpetuating a cycle of African dependence on the West.
According to him, it appears the IMF of yesteryears, is no longer the IMF seen today. He revealed that the recommendations by the IMF in helping revive Ghana’s economy is equally questionable.
Among other things, Prof Gyampo questioned why the Fund didn’t talk about taxing the extractive sector adequately to raise more revenue for the country and its silent on what Ghana must do to stop illicit financial flows.
Additionally, he expressed concern on whether the Fund was coerced to keep quiet about the local and international calls on the country’s government to downsize.
“They are no longer bold; they are no longer courageous; and they seem to be tacitly perpetuating a cycle of African dependence on the West. Otherwise, how and why were very low-hanging serious recommendations that would help us quickly turn things around, overlooked? Is the IMF ignorant that we earn just about only 5% of royalties from our gold? Is the IMF not aware that we produce oil and yet earn only just about 13% of the oil revenues?”
Prof Ransford Gyampo
Expressing his view on the IMF conditionalities to Ghana, he indicated that these are measures that may impose some hardships that ideally should be endured, with the understanding that all must sacrifice in order to turn things around. He explained that they are measures that Ghana could have implemented without receiving them as orders from the IMF.
“A sovereign nation headed by a regime that touts its credentials of having the men should have known and implemented these interventions without waiting for the IMF to tell us what to do.”
Prof Ransford Gyampo
Similarly, Prof Gyampo further highlighted more concerns questioning whether the agreement was a “truly well-negotiated IMF deal” and also whether the IMF truly knows what is going on in Ghana, particularly on matters of corruption.
To this, he noted that Ghana is always caught in the quagmire of “fetching water with baskets” when it comes to corruption, yet, nothing substantial was made by the IMF to help the country check the leakages and slippages.
“Indeed, in the fight against corruption, the talk about the continuous implementation of a National Anti-Corruption Action Plan (NACAP) that exists merely in name by the document, shows that the IMF perhaps is no longer a serious institution. This is because it doesn’t appear there will ever be serious efforts at implementing the NACAP and an IMF that does not know this is bogus.”
Prof Ransford Gyampo
Furthermore, Prof Gyampo highlighted that any IMF Conditionality that is unable to answer the questions posed is a mere propaganda that seeks to inflict hardships on the poor, make Africans dependent on the West and cover up for leadership incompetence and unwillingness to sacrifice.
In light of this, he warned the government that Labor would resist any unnecessary imposition of hardships on poor people without a palpable show of sacrifice on the part of political leadership.
“The IMF must know that the Ghanaian is intelligent enough to know when a cycle of dependence is being perpetuated and we will soon resist. If the IMF truly wants to help us, then they must be bold in telling us nothing but the truth so we can wiggle ourselves out of imposed and self-inflicted hardships. An IMF that fails to do this will deepen the derogatory, (but sometimes deserving) PERCEPTION that reduces it to a spineless organization, staffed by cowards, praise singers and fun-fool respecters of failed African leaders.”
Prof Ransford Gyampo
Recommendations for government in $3 billion IMF support
Highlighting on what government must do following its securing of the $3 billion support, Prof Gyampo emphasized the need for government to achieve a primary surplus of 1.5% of GDP by 2025 through to 2028 and deepen Public Financial Management, while accelerate energy sector reforms
Additionally, he underscored the need to strengthen State-Owned Enterprise (SOE) competitiveness and efficiency; and integrate all sources of funds, HRMIS, GHANEPS and Payroll systems into the GIFMIS platform.
“Finalize the audit of COVID-19 spending prepared by the Auditor General; Prepare new guidelines for Emergency Expenditure Management; Strengthen organizational and legal arrangements for addressing corruption and enhancing accountability and integrity; and Continue to implement and update the National Anticorruption Action Plan.”
Prof Ransford Gyampo
Also, the political scientist stated the urgency to develop and implement a strategy to engage Ghanaians and all relevant stakeholders in building public awareness and broad support for the policies underpinning the Fund-supported program.
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