The New Patriotic Party\u2019s (NPP) 2016 running mate, Dr. Mahamudu Bawumia has indicated that the government could have avoided going to seek a bailout from the International Monetary Fund (IMF).<\/p>\n
[contextly_sidebar id=”QZfYahXKggZZ7frnNXFzUwHoX8RLBOkW”]He blamed the government for refusing to listen to sound advice from many quarters on how to fix the socio-economic challenges the nation was facing.<\/p>\n
\u201cBut government refused to listen. They believed in their own propaganda and said \u201cYentie Obiaa\u201d [We won\u2019t listen to anyone]. When government was cautioned about the scale of borrowing, the government responded that they would borrow more. Now that their propaganda has been exposed by economic reality, they are now forced to listen to the IMF. We have moved from \u201cYentie Obiaa to \u201cYebetie IMF Nkoa\u201d [we will listen to the IMF only],\u201d he remarked.<\/p>\n
In 2014, the Mahama-led government applied for a bailout programme<\/strong><\/span><\/a> from the IMF to help bring the country\u2019s economy back on track.<\/p>\n This was due to the worsening socio-economic challenges the country was dealing with; a situation some blamed on the bad policies of the government and the lack of fiscal discipline.<\/p>\n In February 2015, the IMF announced that an amount of\u00a0US$940 million will be given to Ghana<\/strong><\/span><\/a> to\u00a0help the country turn the ailing economy around over a three-year period.<\/p>\n Speaking on the topic, \u2018IMF Bailout, Will the Anchor Hold?\u2019 at the Distinguished Speaker Series in Accra, the former Deputy Bank of Ghana (BoG) Governor said it is deeply worrying that the government is still unwilling to admit the reality that the policies it pursued over the last few years has harmed the nation\u2019s economy.<\/p>\n \u201cGovernment continues to rationalize and even justify these very policies that have landed us in the hands of the IMF with claims like \u201cSmart Borrowing\u201d still being pushed by the managers of our economy.\u201d<\/p>\n This, he said raises questions over the capability of the same managers of the economy to effectively \u201coversee the significant changes required to turn the tide and return the economy to a healthy state.\u201d<\/p>\n Dr. Bawumia admitted that Ghana has sought bailout programmes from the IMF several times but the practice can only cease if there is \u201ccommitment of the government and people of Ghana to fiscal discipline and sound economic policies and not the IMF. Without this, the anchor will not hold.\u201d<\/p>\n He was certain that with \u201chard work, dedication, integrity and sound economic policies, Ghana\u2019s brighter days are ahead of us. We can do it ourselves but as I continue to say, discipline and honesty remain the keys. We can change the current reading of the Economic Odometer from red to blue if we do the right things. Fellow Ghanaians, with good economic management and incorruptible leadership, we can do it ourselves.\u201d<\/p>\n Manage citizen expectation on IMF deal<\/strong><\/p>\n Dr. Bawumia also cautioned government not to compromise the success of the bailout programme.<\/p>\n This, he said can be achieved if the expectations of citizens are well \u201canchored\u201d since \u201cmost Ghanaians have no idea how difficult the adjustment to this bailout programme is going to be.\u201d<\/p>\n Dr. Bawumia said it is imperative for the minds of citizens to be conditioned to \u201ccollectively prepare for some painful adjustments.\u201d<\/p>\n According to him, as part of the conditions for the IMF bailout, the government had agreed to begin the rationalization of public sector staff through a combination of worker layoffs and voluntary retirements.<\/p>\n But he disclosed that the government however wants the IMF agreement to delay the worker layoffs until after the 2016 election.<\/p>\n He asked: \u201cI wonder why? I suppose the message is \u201cvote for me before I fire you\u201d.<\/p>\n He therefore advised government to cease painting \u201ca rosy picture\u201d on the effects the bailout programme will have on Ghanaians such as a significant increment in utility prices, worker layoffs, among others.<\/p>\n <\/p>\n By: Efua Idan Osam\/citifmonline.com\/Ghana
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