Saturday,
August 2, 2014
Folks, the latest development in
the government’s search for solutions to the country's ailing economy is to
enter the corridors of the International Monetary Fund for “reprieve”. And this
“reprieve” will definitely be bound to conditionalities. It is a reprieve designed
to come at a huge cost for people already languishing in narrow circumstances.
The IMF has no “sympathy” or “empathy” running through its veins, and will
always go for the jugular when it comes to imposing conditionalities on those knocking
on its door for reprieve.
We are all too familiar with how
the IMF and its affiliate (the World Bank) function, especially when dealing
with countries in dire economic straits. But if care is taken, some kind of “reprieve”
may be forthcoming, granted that those implementing those conditionalities and the
citizens can endure the belt-tightening.
Being whip-sawed, the government
has no option but to dash to the IMF, some may say. But is the IMF our true
ally? Or should the government have done otherwise, depending on home-grown
economic measures to solve the problems? Where are own economists and financial
experts? Mere empty braggarts parading the political landscape? Or real
problem-solvers with reliable acumen?
In any case, the first giant step
has been taken (in desperation?); and here is the news report, based on which I
have given the above opinions:
“President John Mahama has
directed that immediate steps are taken to engage the International Monetary
Fund and other developmental partners to help the country out of the current
economic challenges.
That is one of the major
resolutions reached after he met the Presidential Advisory Committee on the
Economy Friday. The meeting was to reflect on the range of issues affecting the
economy, its impact on businesses and work out strategies to restore confidence
in the economy. President John Mahama also directed that urgent measures are
taken to stabilize the fallen cedi.
The President also demanded that
urgent measures are taken to expedite the coming on stream of domestic gas
supplies to provide cheaper fuel for power generation as well as minimise the
foreign exchange burden of crude oil imports.
(Source:
http://www.myjoyonline.com/business/2014/August-2nd/government-opts-for-imf-bailout.php)
This development gives us more to
discuss, folks. There isn't much wrong with reaching out to the IMF for
support. After all, many other countries have gone that way, the latest being
Ukraine. But going to bed with this Bretton Woods vampire spells danger in many
ways. Are Ghanaians really prepared to be told to tighten their belts (pay more
taxes, face removal of subsidies on utility services, agricultural input, and
many others) all the more? I don't think so, which will be the tipping point in
this arrangement with the IMF.
Ghanaians can bear testimony that
the harsh conditionalities of the IMF (especially as implemented under
Rawlings) didn't help the economy grow. Kufuor sent Ghana HIPC as a result; but
the economy couldn't be put on an even keel. The Mills and Mahama-led
administrations reeled very much; and we are where we are today as a result of
the worsening economic problems.
Will the IMF now be our redeemer?
I wonder but will wait to see how things begin being done before stating a
definitive position on this move. I want to see which conditionalities the IMF
will impose and how much money it will be willing to advance to Ghana and how
the government intends to use that support.
In the interim, though, I can say
that the government has taken an unexpected desperate step whose consequences
it should prepare for. We have been there before and can wring our fingers in
abject regret. Will this willy-nilly re-marriage with the IMF bring about
better results to give Ghanaians any hope for a brighter future to live for?
As a product of the post-World
War Two dynamics, the IMF was set up to function as a “Father Christmas” but to
rake in whatever comes its way for the benefit of those who brought it into
being—the capitalists masterminding global economic inroads. And capitalists
know no limit to their accumulations nor do they have any compunction for
morality. The more they have, the more to look around for. And they grab it
with vigour, violence, and determination.
Dashing to them for relief is a
euphemism for economic and political suicide. They know how to toss the dice
for advantage. Is the Mahama-led government sure that by re-entering the belly
of this vampire called the IMF, it won’t be forced to impose more hardships on
Ghanaians? There is already much tension in the system, and the government
should be guided by goings-on so as not to do anything to push a resilient
citizenry to the wall. Too much is at stake and nothing should be hastily done
to deepen woes. We are monitoring the situation.
I shall return…
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E-mail:
mjbokor@yahoo.com
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