Senior Economics Professor at the London School of Economics (LSE), Robin Burgess, has asked government not to see a possible IMF programme as an end to current economic challenges facing the country.
Speaking to Joy Business in London on the side-lines of the ‘Growth Week’ conference, Professor Burgess said government can do more to sustain a stabilising cedi even before IMF programme by the Washington-based lender.
Ghana’s decision to seek an IMF bailout programme has already started yielding some results. These include the cedis’ stability, seen by many analysts as the biggest threat to the economy.
Already President Mahama has disclosed that Ghana would request for a three-year program with the IMF.
“The is incredibly important because it gives you some macro stability and if you don’t have that then investments won’t flow…but there are many other areas such as infrastructure which is not under the purview of the IMF”, he said.
He added that tackling corruption and creating an enabling environment for business growth, which are all under the purview of government, should be looked at critically.
A former Director General of Securities and Exchange Commission Nii Sowa, also said there is a lot more that government must do to prevent another IMF bailout within the next five years.
Nii Sowa, who is also director of International Growth Center, government needs discipline and strong political will to meet the strict conditionalities that usually come with IMF prgrammes.
