Economist blames World Bank and IMF for Ghana’s economic woes, cites lack of firm oversight
Dr. Ishmael Yamson, a prominent economist in the country, has pointed fingers at the World Bank and the International Monetary Fund (IMF) for their role in contributing to Ghana’s current economic predicament. Dr. Yamson contends that the Bretton-Wood institutions share responsibility for the nation’s challenges due to their failure to take decisive action in response to the government’s borrowing spree.
According to Dr. Yamson, the World Bank and IMF were well aware of the government’s increasing borrowing activities, yet they refrained from taking stringent measures to reprimand or curtail such behavior. While the annual reports issued by these institutions did sound warnings of potential debt distress, Dr. Yamson believes they fell short of being forceful enough in their approach. He argues that instead of merely issuing warnings, the institutions should have threatened to impose sanctions if the government did not heed their cautionary advice.
The economist contends that the failure of the World Bank and IMF to effectively exercise their oversight role on Ghana’s economy has played a significant part in the country’s current debt distress situation. He expresses surprise at the severity of the crisis, stating that such a situation had not been witnessed throughout his lifetime, highlighting the gravity of the economic challenges faced by Ghana.
Dr. Yamson calls for the World Bank and IMF to hold themselves accountable as well, emphasizing that their intentions are likely not aligned with wanting Ghana to fail. He stresses that these institutions must act in a manner that firmly guides the Ghanaian government to make better financial decisions, given the gravity of the economic situation.
During the period of rampant borrowing, Dr. Yamson questions whether the World Bank and IMF were fully cognizant of the government’s actions. He highlights that their reports often mentioned concerns about excessive borrowing leading to debt distress but laments that they did not take further action to prevent it.
“When we were borrowing literally every year were they not aware? All that they’ll put in their report is that the excessive borrowing will lead you to debt distress, simple sentence. And beyond that what else did they do? Did they say to government stop? Never,” he said.
In essence, Dr. Yamson’s critique underscores the need for the World Bank and IMF to adopt a more assertive stance in safeguarding the economic stability of countries like Ghana and ensuring that their warnings are heeded by implementing appropriate measures, including the possibility of sanctions, to prevent potential crises.
