Borrow or not to borrow?

Borrow or not to borrow?

Since Ghana has addressed the Bretton Woods institutions – the International Monetary Fund (IMF) and the World Bank – for help in the early 1970s, at the time of Busia , and in the 1980s, during the PNDC economic revitalization program, the country continued its romantic relationship with both institutions, even though its relations were not without difficulties.

The two financial institutions took the lead while Ghana was in desperate straits and also launched structural adjustment programs alongside the economic stimulus package. In 1985, the economy had already seen some signs of recovery.

Although attempts at divorce took place, the marriage between Ghana and the two institutions was still going on and in the early months of the Atta Mills government, the country returned to seek funds that were then needed to deal with a budget deficit. 14.9%. cent of the country's annual output in 2008 and a currency that had fallen 14% against the dollar.

Ghana has received its largest funds and the largest loan to an African country since the beginning of the global financial crisis: a loan of more than one billion dollars from the IMF to stabilize its economy.

Finance Minister Kwabena Duffuor said the money would be used to boost the central bank's reserves and support the currency.

However, when she took office, President Nana Addo Dankwa Akufo-Addo declared her intention to separate Ghana from the IMF and the World Bank by pronouncing the slogan "Ghana Beyond Aid".

In line with the president's remarks, in 2018, Ghana has completed its final year of the $ 918 million Extended Credit Facility (ECF) signed with the IMF to repair its economy, but the IMF has stated that the date of the end of the fiscal year is the same. The completion of Ghana's program in April 2019 largely depended on countries meeting critical objectives during the mission's badessment visit in September 2018.

The fund said the targets include structural reforms to strengthen public finances and fiscal discipline by improving fiscal transparency, cleaning up and controlling the wage bill, reducing the size of the civil service and improving the perception of the public. recipes.

All of this can be said to be part of the story when Finance Minister Ken Ofori-Atta informed Parliament on Thursday of the successful completion of the IMF's extended credit facility by the IMF. Ghana.

Despite the successful completion of the ECF by Ghana, many opponents believe that leaving the country is only temporary, as has been the case on many occasions.

The Daily Graphic maintains, however, that Ghana must not depend on the development of the Bretton Woods institutions and donors.

Although we are not opposed to borrowing, as this is sometimes necessary depending on the circumstances, we believe that we can do so sparingly and circumspectly without selling our birthright for soup.

The economic woes of Ghana have worsened over the years because we are so dependent on Western aid and are subjecting ourselves to all sorts of austere measures simply to please those who give us loans with high rates of return. very high interest, so we never finish paying up.

Ghana is fortunate to have vast arable land, good weather, various minerals, oil, abundant food, cash crops, and many other benefits that we can exploit to our advantage.

What we need as a country is the careful management of our resources and the valorization of our products before they are exported, as well as the development of our manufacturing industry so that we do not remain dependent on imported finished products. from abroad.

Above all, let's develop our human resources and we will do well as a country without help.