The former Director-General of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson has expressed concern that the International Monetary Fund’s (IMF) program is having a negative impact on Ghana’s economy rather than alleviating it.
In an interview in Accra on June 19, 2024, he said Ghana’s reliance on the IMF is far from over, predicting a swift return to the program after the current term ends.
“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,” Thompson said. “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,” he added.
Dr. Thompson also challenged the moral foundation of the IMF programme with concerns that it unfairly punishes the private sector for the government’s mistakes.
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He criticized the government for burdening businesses and consumers with excessive taxes and interest rates.
“For the past 14 straight months, real credit inflation adjusted to credit to the private sector has been declining, an average of 18% per a month. This is not the solution, 18% per month, the lowest I think is 10% and the highest is 30%. So, we’re sucking the blood out of the private sector, at the same time, we’re claiming that we’re preparing it to lead to inclusive growth after the programme. That’s not going to work,” he added.
Dr. Thompson warned that Ghana faces a triple threat of economic woes, including a crippling brain drain, debt crisis, and economic crisis, plunging it into a dark spot.
