IMF to implement Senchi Consensus

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The mask 11 years ago

The economy is hitting workers hard and many have run out of ideas.

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Angelo 11 years ago

Prof if the solutions are already there then I don't think we needed to go to the IMF. The govt is not disciplined hence our problems. I don't think there is any magic wand IMF has. The priorities of the govt are all wrong. W ...
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Prof if the solutions are already there then I don't think we needed to go to the IMF. The govt is not disciplined hence our problems. I don't think there is any magic wand IMF has. The priorities of the govt are all wrong. We could have reduced the number of supporters to the Word Cup for exampe, we could have used the GYEEDA, SADA moneys more judiciously, The Accra Kumasi road should have been a priority road to be completed etc. The IMF is not needed . The govt has to go. They lack the competence and are too tribalistic for the country. Senchi was just to try to get the NPP there to make it look like the whole country was in agreement. Well it backfired as usual.Sorry Prof u hv missed the point
Nyansba 11 years ago

I AM HIGHLY SUSPICIOUS NOW THAT THE SENCHI PROGRAMME WAS INSTIGATED BY THE IMF AND THE MAHAMA GOVERNMENT AS A WAY OF FULLING WOOL OVER GHANAIANS' EYES. MHAMA'S GOVERNMENT FEARED THAT GHANAIANS WOULD PROTEST IF THEY SIAD THEY ...
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I AM HIGHLY SUSPICIOUS NOW THAT THE SENCHI PROGRAMME WAS INSTIGATED BY THE IMF AND THE MAHAMA GOVERNMENT AS A WAY OF FULLING WOOL OVER GHANAIANS' EYES. MHAMA'S GOVERNMENT FEARED THAT GHANAIANS WOULD PROTEST IF THEY SIAD THEY WERE GOING TO THE IMF. SO THE IMF SUGGESTED TO THEM TO DO A FAST-ONE LIKE THE SENCHI PROGRAMME TO MAKE THE WHOLE DEAL LOOK LIKE THE GOVERNMENT WAS BRINGING A 'HOME-GROWN' PROGRAMME TO THE IMF FOR ENDORSEMENT. BUT WHAT DOES NOT MAKE SENSE IS, IF MAHAMA'S GOVERNMENT COMES UP WITH HOME-GROWN SOLUTIONS, WHY GO TO THE IMF FOR ENDORSEMENT IF NO MONETARY BAILOUT IS INVOLVED? THIS GODLESS GOVERNMENT WILL NEVER TELL GHANAIANS THE TRUTH IN ANYTHING, EVEN IF THAT THING IS TOTALLY HARMLESS TO THEIR POLITICAL FORTUNES.
EZEKIEL 11 years ago

IF it is so, then the Govt is JUST LOOKING for a "SCAPEGOAT"(IMF) to tell Ghanaians,.....look, because of our Situation, the IMF INSISTED on this/that OTHERWISE we wouldn't have gotten the help!!
It is a CLEVER PLOY but it ...
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IF it is so, then the Govt is JUST LOOKING for a "SCAPEGOAT"(IMF) to tell Ghanaians,.....look, because of our Situation, the IMF INSISTED on this/that OTHERWISE we wouldn't have gotten the help!!
It is a CLEVER PLOY but it says ALSO that the Govt is NOT being OPEN to the CITIZENS!
Sarfo Kantanka Ajoa 11 years ago

ANGELO, you forget that NPP government robbed the nation worse than the current NDC government. The major difference is that NPP ministers and party big shots were wise to cover their tracks after stealing in millions of doll ...
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ANGELO, you forget that NPP government robbed the nation worse than the current NDC government. The major difference is that NPP ministers and party big shots were wise to cover their tracks after stealing in millions of dollars. A simple sign is the rush and ease with which Asabee and co pulled up GHC85000 to file for the party's flagbearership!! On the other hand NDC people are so stupid to past on the walls how much monies they illegally take and where they put it. Look at people like GYEEDA staff buying houses in USA; while their people are starving back home. A pity.
SARPONG 11 years ago

Professor Peter Quartey should stop insulting our intelligence or he is a Professor of stupidity. If the Senchi report contains the magic wand that will turn the economy around, then why go to the IMF to implement it for you? ...
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Professor Peter Quartey should stop insulting our intelligence or he is a Professor of stupidity. If the Senchi report contains the magic wand that will turn the economy around, then why go to the IMF to implement it for you?

Why then do we pay the President and his over 700 staff members if they lack the political will to do the right thing?

The fact of the matter is that the Senchi conference was a stupid waste of money and there is no magical wand in there. The only solution is for government to cut down on its expenses, stop borrowing and stop printing more cedis and making cedi worthless.
These are the Professors teaching at our universities? No brain Professors?
KING LOMOTEY 11 years ago

You are so biased that your cognitive processes and emotional intelligence are completely derailed. Sarpong, I'm afraid you don't make any sense whatsoever. Your party affiliation shouldn't prevent you from distinguishing the ...
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You are so biased that your cognitive processes and emotional intelligence are completely derailed. Sarpong, I'm afraid you don't make any sense whatsoever. Your party affiliation shouldn't prevent you from distinguishing the forest from the trees. You are so caught up in small details that you woefully fail to understand the bigger picture.

What the President can use is a board of economic advisors.
Andrew 11 years ago

Idiot, what doesn't make sense to you? If the answer to our economic problems is in the Senchi report, do we need the International monetary fund to implement it for us?

Sarpong makes a lot of sense than your blind suppor ...
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Idiot, what doesn't make sense to you? If the answer to our economic problems is in the Senchi report, do we need the International monetary fund to implement it for us?

Sarpong makes a lot of sense than your blind support of this clueless people ruling the country.

There is not one iota of sense in your comment.
Botha 11 years ago

You sound like a complete idiot.

You sound like a complete idiot.
KOO NIMO 11 years ago

Lomotey, you only used big words to insult Sarpong but I dont see the difference between the two of you. Am sorry.

Lomotey, you only used big words to insult Sarpong but I dont see the difference between the two of you. Am sorry.

Botha 11 years ago

These ndc professors are a disgrace to the academia. Why go to Senchi if you know you cannot implement your findings because of lack of political will?

These ndc professors are a disgrace to the academia. Why go to Senchi if you know you cannot implement your findings because of lack of political will?
SGT ANANI FIADZOE 11 years ago

Because NPP knows that JM's programmers will assure an emphatic NDC victory in 2016 they have resorted to scare MONGERING tactics by spreading fear and panic.

But do they think people are not discerning? See Alan in 2020.

Because NPP knows that JM's programmers will assure an emphatic NDC victory in 2016 they have resorted to scare MONGERING tactics by spreading fear and panic.

But do they think people are not discerning? See Alan in 2020.
Nii Akwei 11 years ago

Don't bet on it. The IMF will bring their own yardstick to measure the so called Senchi Consensus. The bitter pill to swallow is coming.

Don't bet on it. The IMF will bring their own yardstick to measure the so called Senchi Consensus. The bitter pill to swallow is coming.
GaBaa 11 years ago

Ghana is known to “craft all the policies but implementation has been the problem”.
YOU SAID IT ALL, WHAT MAKES YOU THINK THAT THIS GOVERNMENT HAS THE BALLS TO IMPLIMENT THE IMF POLICIES, ITS JUST A COVER TO GET MORE LOA ...
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Ghana is known to “craft all the policies but implementation has been the problem”.
YOU SAID IT ALL, WHAT MAKES YOU THINK THAT THIS GOVERNMENT HAS THE BALLS TO IMPLIMENT THE IMF POLICIES, ITS JUST A COVER TO GET MORE LOANS AND THEN LOOSE THE ELECTIONS AND STEAL THE MONEY FROM THE CONTRACTS
SARPONG 11 years ago

Do we even have to go to Senchi to eat chicken fried rice whilst these stupidpoliticians molest young girls and boys to figure out what is wrong with our economy? Dr Bawumiah told them what is ailing our economy and the mone ...
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Do we even have to go to Senchi to eat chicken fried rice whilst these stupidpoliticians molest young girls and boys to figure out what is wrong with our economy? Dr Bawumiah told them what is ailing our economy and the money we spent putting people like Akua Donkor in a $400 a night hotel room and feeding thatpolitical whore was a waste of money.i
Branaboy 11 years ago

If the Senchi Resolution was the answer to Ghana's current economic woes then we would not be needing the IMF's assistance.

Here is another idiotic so-called professor selling his intellectual integrity for a few crumbs f ...
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If the Senchi Resolution was the answer to Ghana's current economic woes then we would not be needing the IMF's assistance.

Here is another idiotic so-called professor selling his intellectual integrity for a few crumbs from the public trough. What a disgrace. This man must bow his head in shame. In fact Ghanaians must start calling out these intellectual dishonest members of the so called intelligentsia. They are a disgrace to the economics profession.
Wiafe 11 years ago

Eeii Prof--this one diee--you dey lie. The IMF is a neo-colonialist institution and they have their own agenda. The IMF is coming to get Ghana to privatize the energy sector--especially selling ECG.

So for some few Cedis ...
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Eeii Prof--this one diee--you dey lie. The IMF is a neo-colonialist institution and they have their own agenda. The IMF is coming to get Ghana to privatize the energy sector--especially selling ECG.

So for some few Cedis from the NDC crooks you are willing to throw dust in the eyes of Ghanaians. So is this bullshit you teach to your students at Legon?
Ohenenana 11 years ago

I find it very difficult to believe. After crafting our own solutions to our own problems,we need I M F to implement it. Are we sane at all

I find it very difficult to believe. After crafting our own solutions to our own problems,we need I M F to implement it. Are we sane at all
dan 11 years ago

THEY ARE OUT OF THEIR FUCKING MINDS! BLACK MAJORITY RULE MY ARSE!

THEY ARE OUT OF THEIR FUCKING MINDS! BLACK MAJORITY RULE MY ARSE!
job well 11 years ago

Not until John Mahama and his brothers and cronies return back all their stolen monies to Ghana the so-called Senchi reports or IMF's intervention cannot salvage Ghana's economy. Ghana is reeling economically because John Mah ...
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Not until John Mahama and his brothers and cronies return back all their stolen monies to Ghana the so-called Senchi reports or IMF's intervention cannot salvage Ghana's economy. Ghana is reeling economically because John Mahama and his henchmen are so obsessed in corruption to the point that ethical and moral strength to use to governing Ghana more effectively don't exist. John Mahama's own moral and ethical weaknesses are undermining Ghana's economy and social fabric. How can a thief monitor a thief? I need an honest answer.

LONTO-BOY 11 years ago

Borrowing, spending, looting and living beyond our means. If the NDC Government has turned to the IMF for a bailout, and for that institution to implement the Senchi Consensus, instead of taking those difficult and painful de ...
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Borrowing, spending, looting and living beyond our means. If the NDC Government has turned to the IMF for a bailout, and for that institution to implement the Senchi Consensus, instead of taking those difficult and painful decisions, then Ghana's economic problems will only pause; it will not cease. There are deeper underlying problems which require long term economic policies and programmes, not short term austerity measures.
duke 11 years ago

MAHAMA AND THE NDC GOVERNMENT CANNOT IMPLEMENT THEIR OWN POLICIES WITH DISCIPLINE. THEY NEED THE WHITE MAN TO IMPLEMENT THEIR OWN SO CALLED HOME GROWN POLICIES FOR THEM AFTER 57 YEORS OF INDEPENDENCE FROM THE COLONIAL MASTER ...
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MAHAMA AND THE NDC GOVERNMENT CANNOT IMPLEMENT THEIR OWN POLICIES WITH DISCIPLINE. THEY NEED THE WHITE MAN TO IMPLEMENT THEIR OWN SO CALLED HOME GROWN POLICIES FOR THEM AFTER 57 YEORS OF INDEPENDENCE FROM THE COLONIAL MASTERS; TALK ABOUT AFRICAN MAJORITY RULE - MY ARSE MAJORITY RULE; IT IS RATHER AFRICAN MAJORITY MIS-RULE
They Say They Say 11 years ago

This no political balls syndrome have been one of the biggest threat to Ghana's development. All these politicians are afraid to loose the next elections so they dance around problems, kick the cans down the road, afraid to p ...
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This no political balls syndrome have been one of the biggest threat to Ghana's development. All these politicians are afraid to loose the next elections so they dance around problems, kick the cans down the road, afraid to prosecute justice even when they know it's the right thing to do. It's just a big problem which keeps compounding.
Papa Yaw. 11 years ago

Yes

Yes
JAMES Y 11 years ago

Using IMF as surrogate to implement the government's home-grown economic policies which it lacks the will to thrust on Ghanaians to accept would, perhaps, be the way out of the difficulties. Whether they like it or not, Ghan ...
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Using IMF as surrogate to implement the government's home-grown economic policies which it lacks the will to thrust on Ghanaians to accept would, perhaps, be the way out of the difficulties. Whether they like it or not, Ghanaians will have to accept those policies. If people think NPP government, should they win the elections, will solve our economic problems without suffering hardships and without IMF help, they should think again.
Esperanzo 11 years ago

THE SCOURGE OF THE IMF & WORLD BANK

“The poor complain, they always do,
but that’s just idle chatter.
Our system brings rewards to all,
at least to all who matter.“
~Gerald Helleiner, Canadian developmental econo ...
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THE SCOURGE OF THE IMF & WORLD BANK

“The poor complain, they always do,
but that’s just idle chatter.
Our system brings rewards to all,
at least to all who matter.“
~Gerald Helleiner, Canadian developmental economist.

There are clear connections between monetary and trade policies, and the poverty that sets the stage for human trafficking. The World Bank and International Monetary Fund (IMF) are two of the most powerful players in the world, who, by providing aid and loans to poor countries, can dictate a country’s economic policies. The policies of the World Bank and the IMF exacerbate the problem of poverty by imposing huge debts on developing nations and forcing governments to cut back such vital social services as education and medical care in order to pay back the debt. The IMF and World Bank also require countries to roll back labor laws, open up to foreign investors and trade and privatize essential services, including pensions. These policy reforms result in an increase in poverty, child labor, and worker exploitation.

Haiti has, for too long, been the poorest nation in the Western Hemisphere. Yet just 15 years ago they exported rice. Then, in 1995, under pressure from the IMF and the United States, Haiti was forced to cut tariffs on rice imports from 35 to just 3 percent. Haitian farmers were completely unable to compete with heavily subsidized foreign rice. The U.S. Department of Agriculture doled out 177 billion dollars in farm subsidies to U.S. agribusiness between 1995 and 2006. Three quarters of that amount went to just 10 percent of the recipient corporations. The biggest winner was Riceland Foods in Arkansas, the world’s largest rice miller and marketer. As imports to Haiti grew by 150 percent, many farmers had to abandon their farms and join the teeming underclass in Haiti’s slums. Haiti no longer exports rice and food shortages are ever-present. The most desperate are reduced to offering their children dried cakes of mud to fill their empty bellies. Today, three quarters of Haiti’s rice comes from the United States while more than a half million Haitians are trafficked to slave in the sugar fields of neighboring Dominican Republic, domestic slavery is institutionalized in the restavec system, and a 9-year-old Haitian girl can be bought as a sex slave for $50.

In today’s global economy, the rich are getting richer and the poor are getting poorer. The assets of the world’s three richest people exceed the total incomes of the 600 million people living in the world’s poorest 48 countries. In the unfettered free market of so-called free trade, corporations race to see which one can find the cheapest labor and the fewest environmental and workers’ rights regulations. A key factor in world poverty is the inability of workers in many countries to form unions and to have a voice in the determination of their wages and working conditions. As a result, millions of the world’s workers labor long hours for wages that are insufficient to meet their basic needs. Thus are the seeds sown for abuse and exploitation at the hands of those who would profit from human trafficking.
BOY KOFI 11 years ago

I think Mr Kofi Atta's article of yesterday opened up a debate on this IMF bail out theory which we did not put much emphasis on.Now it is clear that the so called home grown economic policy is all about the Senchi Economic F ...
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I think Mr Kofi Atta's article of yesterday opened up a debate on this IMF bail out theory which we did not put much emphasis on.Now it is clear that the so called home grown economic policy is all about the Senchi Economic Forum.Taking from Kofi Atta's point of view, the govt has no money to pay the redundant workers but the govt is not telling us this.The IMF will find money to pay all these workers, are we sure? I have 2 brothers who were affected with redundancy at WVLC in Takoradi during Kuffour's era and they have not been paid up to now.Why? The WVLC was a state owned enterprise that govt sold it out but could not pay the workers until today, almost 10 years back.Is that what Mahama also want to do with our workers? Govt have money to pay dubious claims of judgement debt but has never got money to pay laid off workers, why? We are watching.Thank you.
Esperanzo 11 years ago

The IMF and World Bank Are Major Causes of Poverty in Africa

Opinion article questions the efficacy of IMF and World Bank policies in the developing world.

Trade liberalization can have negative effects on local indus ...
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The IMF and World Bank Are Major Causes of Poverty in Africa

Opinion article questions the efficacy of IMF and World Bank policies in the developing world.

Trade liberalization can have negative effects on local industries. Photo Credit: Cassandra Nelson/Mercy Corps

The International Monetary Fund (IMF) and the World Bank are the major cause of poverty in African countries today. Despite claims that they will reduce poverty in Africa, it is widely accepted that most of the debts, as a cause of poverty in Africa, are due to the policies of the International Monetary Fund (IMF) and the World Bank.

Their programmes have been heavily criticized over the years because they most times result in poverty scenarios. The IMF and the World Bank's polices are very different now from what they were originally intended for. These two monetary institutions were first formed by 44 nations at the Bretton Woods Conference in 1944 with the goal of creating a stable framework for the post-war global economy.

The IMF in particular, was originally formed to promote steady growth and full employments by offering unconditional loans to economies in crises and establishing mechanisms to stabilize exchange rates and facilitate currency exchange.

Much of these visions never came to reality. Pressure from the US government made IMF start offering loans based on strict conditions. Critics have said that these policies have reduced the level of social safety and worsened labour and environmental standards in developing countries.

The World Bank, initially known as the International Bank for Reconstructions and Development, was formed to fund the rebuilding of infrastructure in nations ravaged by World War II. Its focus soon changed in the mid 1980's. The Bank turned its attention away from Europe to the third World countries, most of which are in Africa. It started funding massive industrial development projects in Africa, Asia, and Latin America.

Critics say that IMF policies have reduced the level of social safety and worsened labour and environmental standards in developing countries.
Most Scholars and human rights activists contend that the Bank's aggressive dealings with developing nations, which were often ruled by dictatorial regimes, exacerbated the developing world's growing debt crisis, devastated local ecologies and indigenous communities.

The World Bank and IMF adjustment programmes differ according to the role of each institution. IMF's loan conditions focus on monetary and fiscal issues. They emphasize programmes to address inflation and balance of payment problems, often requiring specific levels of cut backs in total government spending.

The adjustment programmes of the World Bank are wider in scope, with a more long-term development focus.

They highlight market liberalizations, seen as promoting growth theory expanding exports particularly cash crops.

The IMF and World Bank are largely controlled and owned by the development nations such as USA, Germany, UK, Japan, amongst others. The US for example controls 17 to 18% of the voting right at the IMF. When an 85% majority is required for a decision, the US effectively has veto power at the IMF. In addition, the World Bank is 51% funded by the US treasury.

Under a plane devised mechanism the World Bank and the IMF loan money in return for the structural adjustment of their economies. This means that economic direction of each country would be planned, monitored, and controlled in Washington. For instance, the World Bank assistance for helping a poor country involves, country by country investigations with a meeting of begging-Finance Ministers who are handed a restructuring agreement pre-drafted for voluntary signature.

Trade liberalization can lead to dumping of cheap and substandard products from outside. This undermines local industries that produce or intend to produce the same products.
According to James Sackey, former World Bank Country Representative in Sierra Leone, these instructions include privatizations, trade liberalization, high interest rates etc. Trade liberalization for under-developed economies could have some serious attendant effects.

For one, it could lead to dumping of cheap and substandard products from outside. Such items as clothes, shoes, creams are just amongst many others that flood markets in developing economies.
This undermines local industries that produce or intend produce the same products.

Africa's infant industries fail to take off under extensive trade liberalization. This is also very critical with respect to imported food such as rice, wheat, milk, amongst others. Developed countries which have excess of these food items reduce their prices and export them to Africa as a way of getting rid of them. If such situations were not conditioned, Africa would never be able to produce its own food.

Privatization, on the other hand, and its effects on government enterprises that do not function well cannot be challenged. But wholesale privatization of everything that is government owned cannot also be justified. In any case, there are few difficulties such as the limited indigenous business to take over government enterprises; the shortages of local private capital to pay for the running cost of privatized enterprises and the greater importance of the services to the people of some enterprises as compared to being profitable.

What often happens is that it is the so-called soft sectors of education, health, and housing amongst others that will suffer from the cut in government expenditure.
Also high interest rates increase the incentive to save money, but they also encourage speculative investment that brings quick paper money profits to a few people while adding nothing to the productive capacity. High interest rates and high credit also make capital to start new business get difficult to come by. Therefore, they result in stagnation.

Again the cut in government expenditure in some cases could be necessary. However, what often happens is that it is the so-called soft sectors of education, health, and housing amongst others that will suffer from the cut in government expenditure. Most governments do not reduce expenditure on the army or on their non-productive and unnecessary areas. The result is that cut in government expenditure ends up harming the welfare of the people.

Another very important factor is the devaluation of currencies which is supposed to increase self sufficiency by making imported products more expensive and African exports cheaper. Since most African countries do not produce these products, it is not possible to replace them with locally produced ones.

On the other hand, most of the countries that buy African products have set certain amounts on how much can be imported or have fixed prices in foreign currencies to shelter their own products, even when they become cheaper in local currencies, do not necessarily gain new outside markets or earn more foreign exchange.

Contributed by Bhoyy Jalloh in the Opinion section of the Concord Times in Freetown, South Africa.
GhanaMan 11 years ago

That is the truth. "Implementation has been the problem”. This what I has observe when I tried o do business in Ghana with Gov. Ghana needs some one like he late PV Obeng. He was the real dower.

That is the truth. "Implementation has been the problem”. This what I has observe when I tried o do business in Ghana with Gov. Ghana needs some one like he late PV Obeng. He was the real dower.
Siaw 11 years ago

Ghana has been mortgaged deliberately for a quick buck.
We need to REALLY open our eyes and pick patriotic leaders.
This system is becoming very dangerous and threatens our survival and future of our children.

Ghana has been mortgaged deliberately for a quick buck.
We need to REALLY open our eyes and pick patriotic leaders.
This system is becoming very dangerous and threatens our survival and future of our children.

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IMF to implement Senchi Consensus

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