IMF team in Ghana to assess economy, propose measures
Economist, Professor Godfred Alufar Bokpin, has opined that the political will of any government not to seek financial bailout from the International Monetary Fund (IMF) can only be delayed but not prevented due to the structural bottlenecks that exist in Ghana’s economy.
According to him, despite successive governments having their own ideologies on how to sustain the economy, there still remain bottlenecks in the economy which have been unattended to since independence.
Speaking at a roundtable forum organised by the Institute of Economic Affairs (IEA), Prof Bokpin explained that these bottlenecks have manifested in debt unsustainability affecting the public debt stock, price development issues which has resulted in inflation, increasing government expenditure, revenue performance among others, which have all impacted in the country’s decision to seek assistance from the IMF in the past.
“I agree going to the IMF is a political decision. But it is driven by economic fundamentals, so it gets to a point where you realise that your political pride may not be able to generate the much-needed confidence in your economy," he said.
“The economic fundamentals will eventually prove stronger than the political will to go or not to go. So, we can delay it for a while,” he added.
Meanwhile, government has insisted it will not return to the IMF for financial bailout despite the current economic challenges in Ghana.
Finance Minister, Ken Ofori-Atta, has maintained that government is keen on implementing home-grown policies to stabilize the economy adding that calls for a return to the IMF will lead to dire consequences.
Professor Godfred Alufar Bokpin, Economist