Ghanaian governments only borrow to waste; not to develop – Economist

US-based Ghanaian economist Dr Sa-ad Iddrisu has said Ghana has not gotten the economic value of the monies borrowed by governments and that is hurting the progress of the country.

According to him, successive governments in Ghana have only borrowed to waste and not to develop the country and until this issue is resolved, no amount of money given to the country by the International Monetary Fund (IMF) can remedy the country's economic problem.

He stated that without solving this issue of wastage, no proper development will come out of the loans and bonds "we secure irrespective of the government that is in power."

Dr Sa-ad made this comment on Accra-based Joy FM's JoyNews programme while discussing Ghana's Domestic Debt Exchange Programme (DDEP) and the call to the IMF for a financial bailout.

"Ghana, in particular, we only borrow to waste and not develop the country and until we fix this particular issue, there wouldn't be any meaningful developmental project that will come out of our loans no matter how much we borrow.

"It doesn't matter which government is in power because there are projects that were started by Rawlings with borrowed funds and they were abandoned by the government that took over from him.

"The same thing with Kuffour, Professor Mills, and John Mahama will happen when Akufo-Addo leaves power," he projected.

"Meanwhile, Ghana is paying these huge loans with interest but we are not getting economic returns from these projects.

"Look at the Sagleme Housing, money was borrowed to start the project but has been left to rot.

The examples are many," he said.

He expressed belief that Parliament should step in by passing a law that will compel any government to finish the project of his predecessor that was started with borrowed funds.

"It seems we just have an appetite for borrowing just for borrowing sake. So where are we going as a nation if Parliament can't pass a law that will compel any successive government to finish the project of its predecessor?" he asked.