The government of Ghana’s timing and rather shocking U-turn towards the International Monetary Fund (IMF) has raised some eyebrows.
It would be recalled that over the course of the past few weeks, Finance Minister Ken Ofori Atta, Deputy Finance Minister, Dr. John Kumah, Chairman of the Finance Committee in Parliament Kwaku Kwarteng and several leading members of the NPP party and the government had definitely rejected the suggestions from the oppositions NDC and many other Economist and economy watchers to reach out to the IMF for assistance.
The former President John Dramani Mahama, barely 24 hours before the official communication from the government that it wanted to begin formal negotiations with the IMF suggested that indeed, Ghana was ripe for the IMF. He was thoroughly castigated by some leading members of the government and of the party.
Thus, the sudden u-turn has many curious about the government’s change of mind.
Dr. Michael Adongo, Development Economist has suggested that the government’s questionable timing could mean something more sinister and sneaky is afoot.
He said this when he spoke on A1 Radio’s Day Break Upper East Show.
He said the government’s secret intention may be to relieve itself of the burden of the cost of implementing some of its flagship programmes. But for the sake of political expediency, the government may not be able to say so outrightly; thus comes the IMF.
“The move to IMF is more of a political calculation rather than an effort to seek financial redemption. Government wants to stop Free SHS. Government wants to stop the Planting for Food and Jobs programme. Government wants to stop NABCo. You know, these are the first candidates when we go to the IMF.”
“They are not going to take people’s money and come and give it to you as subsidies. Nobody is going to give you money to come and increase wages or emoluments. They already think that your wage bill to debt ratio is unsustainable.”
“Organised labour is going to organise an industrial strike to demand better conditions of service. What better way to deny them this than to say IMF has put a moratorium on wage increment?” he said.
Read Also: Tighten your belts; IMF conditions’ll be painful, brutal – Adongo to Ghanaians
Dr. Adongo Ayamga continued to say that “if you wanted genuine economic interventions, then we should have gone there in 2019, 2020, 2021.”
Source: A1radioonline.com|101.1MHz|Mark Kwasi Ahumah Smith|Ghana
