lundi, 17 juin 2019

IMF, a genuine partner or an exploiter

For decades Ghana has been entangled in the complex IMF and other western financial institution’s web that it has very little to write home about. Between June 1995 and October 2006 Ghana had three arrangements with IMF under various disguise phrases such as Enhance Structural Adjustment Facility and Poverty and Growth facility. It again recently agreed with the Ghana Government a programme worth $940 million said to aim at overcoming the country’s economic challenges, supporting stronger economic growth and lower inflation. Mr Joel Toujas-Bernate, Divisional Chief of African Department of IMF is said to have told a press conference that "the the main priority of the programme is to restore debt sustainability through a sustained fiscal consolidation, and to support growth with adequate capital spending and a reduction of financing costs."

It is worth mentioning that no singular institution in our time has facilitated the devastating spread of poverty in Ghana and for that matter in other African countries than the International Monetary Fund. IMF, other Western financial institutions and donor agencies have remain mere fronts for Western profiteers Instead of being a genuine partner in our development agenda that aim at taking our people out of vicious cycle of poverty. It is important and prudent to accept that the IMF and other Western financial institutions are not charitable entities and that they in a serious business. It is simple logic that when we are better off as a country, there would be some level of reduction in the wealth they get from us. Hence their economic prescriptions and conditionality is aimed at those that have very little in contents in resolving our economic and development challenges.

After the long and sustained struggle led by Dr Kwame Nkrumah to Ghana’s independence, the euphoria that political freedom automatically leads to economic prosperity is increasingly giving way to a gloomy certainty, as Western powers scheme diabolical means to hold Ghana and African in general down. This colonialist programme is being executed by the IMF under many cover-ups, including foreign debt burden and bogus reform programmes hooked on the removal of subsidies from essential sectors that are of paramount importance to our country and its people. The debt weight in particular has become a sadistic circle organised to perpetuate economic misery irrespective the calibre of experts that implement our government policies.

It has always been the IMF policy to perpetually keep its ’business partners’ in debts. This is the only way, it believes the business it does, that is making money for its owners, can be sustained. Over the years the IMF has hook on unto its crooked system of compound interest which has made countries in developing world perpetually poor. Such policies and strategies should be a source of concern to our leaders and those conduct business with the IMF on our behalf. The conduct of IMF and other Western financial institution is becoming increasingly questionable. Before any loan is granted, our situation has already been analysed and hence their prescriptions.

In 2009 the IMF loaned Ghana $602 million, a loan contracted by the previous administration. Before the loan it has already predicted that the fiscal deficit is to be reduced to 9.4 percent of GDP in 2009, then to 6 percent of GDP in 2010, and 4.5 percent of GDP in 2011, net public debt would rise to 67 percent of GDP in 2010, up from 42 percent in 2006. By 2014, the projected fiscal correction would help reduce debt to under 60 percent of GDP, Inflation is targeted at 14.5 percent at end-2009, falling to single digits before end-2010, GDP growth (excluding oil) is projected at 4.5 percent in 2009, rising to 6 percent in 2011, Oil production is projected to start in 2011, with initial output equivalent to 17 percent of non-oil GDP and Net international reserves would be stabilized in 2009, before rising in 2010-11. The resulting gross reserve cover would approach 3 months of imports by end-2011. The proposed new allocation of IMF Special Drawing Rights is anticipated to strengthen reserve cover further. Most of these predictions by IMF were achieved but the question is how did it come by these figures while the situation today is different and it has to come in again !

It is important that as a country we do all that it takes to wean our country from the control of IMF, the world bank and other Western financial institutions that continue exploit our country for their comfort and pleasure. The imperialist agenda is relentless and the system they put in place to subjugate developing countries and importantly Africa countries so many years ago is still on course. It is not going to be easy but with honest participation and contribution by all citizens irrespective of our political affiliation we shall succeed in our quest for that economic independence. This would mean that we should be honest, cooperative and participate when it comes to our obligation to tax authorities, patronise made in Ghana goods and services, be honest in accessing and evaluating the work of those we put in charge of state business and support policies that are in our collective interest. It also requires leadership to demonstrate a genuine commitment to our course. Together we build a Ghana that we want for ourselves and generation yet unborn.

Long Live Ghana and

Long Live Progressive minded fellow Ghanaians.

By Alexander Bediako

Source from

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