Bretton Woods Institutions not Designed to Prioritise Africa, Seth Terkper Says
Former Finance Minister, Seth Terkper, has expressed reservations about the original purpose of key global financial institutions, contending that their formation did not centre on Africa’s development agenda.
Speaking on PM Express Business Edition on Joy News, he disputed the common belief that institutions such as the International Monetary Fund and the World Bank were created with the aim of supporting African economies.
He noted that while these institutions have provided critical assistance during periods of economic distress, their initial mandate was not tailored toward Africa.
“Let’s put it this way, the institutions that we mentioned – the World Bank and IMF – that helped during the crisis, you talk about it, that’s why I’m using them as examples. They were not set up to help Africa,” he stated.
His remarks come at a time when concerns are resurfacing over the strength of economies such as Ghana, particularly amid external pressures including geopolitical tensions in the Middle East.
Elaborating on his position, Mr Terkper cited the historical backdrop of the Bretton Woods institutions, indicating that early financial support was channelled primarily to countries affected by war.
“I am saying that at the time they were set up, Bretton Woods, a substantive flow went to the countries that were engaged in a war, Germany and the rest, which were devastated. Those are the first financing, but today they don’t go to those institutions to stabilise,” he explained.
His comments point to a broader view that Africa’s interaction with global financial institutions has been influenced by frameworks that were not originally designed with the continent in focus.
The former minister’s comments further contribute to ongoing discussions about the equity and efficiency of the global financial system, especially as African economies continue to contend with external shocks despite years of structural adjustment efforts.
