Dr. Nii Moi Thompson, a prominent economist, has expressed deep concern about the International Monetary Fund’s (IMF) program in Ghana. He argues that the program, designed to address economic challenges, might be producing unintended consequences.
In an interview on Channel One TV, Dr. Thompson painted a grim picture, suggesting that the IMF’s intervention, intended to be a solution, could be exacerbating existing problems and deepening the crisis.
He predicts a potential “revolving door” scenario, where Ghana exits the programme only to re-enter shortly after.
Dr. Thompson emphasises a potential flaw in the programme’s structure. He fears it might create a dependence on IMF bailouts, potentially leading Ghana to its 18th or even 19th program cycle. This, he argues, is not a sustainable solution.
Beyond the immediate economic concerns, Dr. Thompson highlights a worrying trend: brain drain. He suggests the ongoing economic crisis, fueled by debt and mismanagement, is leading to a talent exodus. This, he terms, the “third crisis.”
Even more concerning, Dr. Thompson argues that the programme itself, intended as a solution, might be worsening the situation. He emphasises the negative impact of high taxes and interest rates imposed on businesses and consumers.
Dr. Thompson questions the fairness of the programme’s approach. He criticises the government for imposing the burden of economic mismanagement on businesses and consumers through high taxes and interest rates. These measures, he argues, are stifling the private sector, a crucial engine for growth.
“I think we’re in a very dark spot, and everybody knows that I’m just restating it. Perhaps there’s a third dimension that we don’t talk about, which is what I call the third crisis, we can get into that later, the brain drain that is happening as a result of the economic crisis we’re facing now, the debt crisis, the economic crisis.
“And the fact that what is supposed to be the solution to this crisis is actually aggravating the problem. And I’m referring to the IMF programme. It almost certainly makes things worse. So, we will exit the programme, yes, but we will almost immediately re-enter. The programme looks like it’s actually designed to lead us to the 18th one, possibly the 19th, and so on. It’s not helpful at all, it’s doing more harm than good.”
“I could just give you a couple of examples, the issue of the private sector, let’s step back and look at the moral basis of the programme itself. Why someone else will screw up the economy, that’s the government, those in charge of the micro economy, fiscal policy, and monetary policy, they messed it up.
“And then for some reason, they decided to punish businesses and consumers, who had nothing to do with that, through high taxes, high interest rates and so forth and so on. And now you see the debilitating effects on the business sector,” he pointed out.
Dr. Thompson expressed scepticism about achieving inclusive growth after the programme ends. He highlights the significant decline in real credit availability to the private sector, questioning how this sector can lead future growth without access to capital.
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