Dr. Assibey Yeboah
I have listened to an audio recording of a Citi 97.3 FM interview where the immediate-past former MP for New Juaben South constituency, Hon. Mark Assibey Yeboah is heard admonishing the government to seek a bailout from the International Monetary Fund (IMF) to revitalize the economy, rather than resorting to the imposition of the Electronic-Transaction levy, popularly known as E-Levy on Ghanaians.
Dr. Assibey Yeboah argues that the E-Levy will accrue just some GHs 5 billion, albeit the projected revenue figure of GHs 6.9 billion which in his view was insignificant and therefore would advise the government to go to the IMF where some $3 billion could be guaranteed to shore up the shortfalls in the country's revenue.
At the risk of sounding economically savvy, I have some difficulties/challenges with this admonition, which l surmise the respected former Chairman of the Finance Committee of Parliament may not have averted his mind to. What are these difficulties/challenges?
First and foremost, facts and history have taught us that bailouts from Bretton Woods Institutions (IMF and World Bank) are not 'freebies." They're payable loans that come at higher interest rates amid strings attached sometimes extremely unbearable!
The most recent is the 2014 bailout under President John Dramani Mahama where the government was forced to freeze public sector employment and stagnate salaries/allowances. This explains why the country was saddled with hundreds of thousands, if not millions of unemployed graduates under the erstwhile NDC administration.
It is worthy to note that unlike the John Mahama economic woes of 2014/15/16 which was artificial (self-inflicted as a result of massive corruption, mismanagement and incompetence), the current economic predicament we have on hand is occasioned by a force majeure (an act of God), i.e. the deadly COVID-19 which has not spared even giant economies around the globe.
Despite the ravaging effect of this deadly pandemic, the Nana Addo Dankwa Akufo-Addo government, being sensitive to the plight of citizens has resisted the temptation of cancelling its numerous lifesaving social intervention programmes and laying off public sector workers.
Strangely, the "IMFpreneurs" bailout appears to have forgotten that any facility/bailout to Ghana will be paid back with interest, unlike the E-Levy which will be an internally generated fund at no cost to the government whilst helping same to continue solving the myriads of developmental needs of the country.
As already stated, an IMF bailout will automatically lead to a freeze on public sector employment, stagnation of salaries/allowances, and cancellation of the lifesaving Free SHS, Teachers and Nurses Trainee Allowances, NaBCo amongst others. I shudder to think that people have not considered the adverse effects of a bailout on the country.
How do we as a country deal with the issues of unemployment, roads, healthcare, agriculture, education, and provide hope for the destitute children who, but for free SHS would have had to stay home or most probably end up on the streets selling dog chains with such draconian conditionality's?
Have we thought of the social vices - armed robbery, prostitution, drug use and abuse etc which will spring up as a result of a worsening unemployment situation? Let's hasten slowly!
Methinks an IMF bailout proposal at this stage is premature and risky. I'd rather we sacrifice and brace ourselves for the E-Levy to help grow our economy whilst we continue to enjoy our freedom relative to public sector employment and social intervention programmes. That for me is a more prudent and sensitive way of running the country.