IMF again, i disagree sir.

By: Dauda Mohammed Suru

Given that, the same actors and same interest are determining the IMF programmes in Ghana, it is safe to assume that, the more we have change in government the more the IMF policies remain the same.

Each passing day, seems to be saying to Ghanaians;“you are headed in a dangerous direction, you must sit up and act now.”

The government of Ghana under the leadership of President John Dramani Mahama after several denials finally announced it is seeking the support of the International Monitory Fund (IMF) to help heal the ailing Ghanaian economy.

Going to the IMF for support simply means that, the government of Ghana will be begging for some amount of money and a promise to implement measures and policies (painful and harsh) that would be put forward by the Fund.Looking at the IMF ways of operating, it is reasonable safe to assume that the bailout would be used to correct the problems resulting from the huge budget deficit – information says Ghana recorded about GH¢8.7 million budget deficit in the year 2012.

Many experts and institutions in and out of the country have expressed opinion s on Ghana’s economy. Others have described the economy as one that is facing difficulties. Whatever Is attributed to it, Ghana’s economy cannot be said to be in its best form.The economy is seriously weak, failing and is not working for the majority of the people. The very harsh policies that have been implemented recently including increases in utility tariffs and fuel prices, increase in value added tax (VAT) and exchange controls rate are themselves sufficient pointers to the harsh reality the people of Ghana are going through.

There is the need for mobilizations of the people for the production of goods which will otherwise be imported and also genuine efforts to industrialization. Ghana must shift away from the IMF sponsored policies to policies that place Ghanaians and their welfare at the centre of everything.There is no doubt that Ghana’s economy is a developing one. Statistics show that, Ghana is a lower middle income country. What is not said is that the country entered the said middle income status with all the features of an underdeveloped economy. The infrastructure is weak, technology is still at the basics and the whole country is heavily dependent on few raw materials that are being exported. The social indicators are never good either, many citizens are finding it very difficult to cope with the harsh realities in the country. Access to sanitations, safe drinking water, health care, education and affordable housing are still very poor for a significant number of the people in Ghana.

Data available from the 2010 population census of Ghana says that, about 4.3 million people(aged 15 years and above) representing close to 28 %have never attended school.The report says, about 34.2% of the main building materials used in the rural areas are mud bricks. The report further stated that close to 19% of the households in Ghana have no toilet facilities.These are but a few that confirm the economic hardships that the people of Ghana are facing.

One would have expected that, a country characterized by these conditions would go for policies that are remarkable different from the policies that are implemented by countries that have a productive industrial base and therefore could take advantage of such loan facilities to correct theireconomic problems.The IMF policies – withdrawal of social subsidies, privatizations of state enterprise, job cuts and wage freezes for the last three decades have not worked and will not work for the Ghanaian economy. Interestingly, on each of the many times Ghana has gone for the IMF interventions, the results have been terrible and the people of Ghana have endured more pain and sufferings.

Should Ghana accept a bailout of theIMFin its current economic situation?My attitude is that Ghana does not need it.In the present state ofGhana’s economicaffairs,there is the need for the government to ensureour mineralresources are used for the benefit of the people.

Potentially,Ghana has immense mineral resources – diamond, bauxite, gold, salt, water bodies, sun shine, and many more.Ghana is far from being labeled a poor country. It is Ghanaians who are poor and they are poor because the country has repeatedly pursued the IMF and the World Bank policies without recourse to the consequences they impact on the ordinary people of the country.

The IMF and the World Bank prefer to describe Ghana as a model economy.However, having religiously implemented the policies prescribed by them (IMF/World Banks), thehard reality is that many citizens including pregnant women can still not get the social benefits that were expected.

There have been many names given to the IMF / World Bank policies. Whether It is callED Economic Recovery Program (ERP), Structural Adjustment Program (SAP),PAMSCAD,Highly Indebted Poor initiative (HIPC), support or bailout, what is certain is that the poor suffer more pains and very few people get the opportunity to feed on the crumbs.