Economist sounds alarm over flawed IMF programme design for Ghana
Economist Professor Godfred Bokpin has voiced his concerns regarding the design of the current International Monetary Fund (IMF) program in Ghana, stating that it fails to address the leakages and wastage of public funds.
According to Professor Bokpin, the focus on increasing revenue without implementing anti-corruption measures leaves Ghana’s public financial management system vulnerable to corrupt acts. In an interview, Prof Bokpin highlighted that the program, as currently structured, may end up leaving more Ghanaians at risk instead of achieving its intended goals.
Professor Bokpin argued that while it is important to improve revenue collection, simply increasing revenue without tackling corruption and inefficiencies will yield limited results. He emphasized the need for comprehensive measures to address corruption and wasteful expenditure, stating that revenue-based fiscal consolidation alone is insufficient. Professor Bokpin believes that a program aimed at tackling revenue leakage challenges should include strict measures to discourage corrupt practices.
Expressing similar concerns, the Ghana National Chamber of Commerce and Industry (GNCCI) has also raised apprehensions about the revenue mobilization efforts under the IMF’s $3 billion support program. The Chamber has warned that the proposed measures could have adverse effects on businesses already burdened with high taxes and unfavorable conditions.
Mark Badu-Aboagye, the CEO of the Chamber, highlighted the economic challenges currently faced by the country and emphasized the need to manage external factors such as taxes, high-interest rates, and levies to support business growth.
The concerns raised by Professor Bokpin and the GNCCI highlight the importance of adopting a comprehensive approach that addresses not only revenue mobilization but also corruption and wasteful expenditure. They argue that without effective anti-corruption measures and efficient utilization of revenue, the IMF program may not achieve its desired outcomes and could further exacerbate the economic challenges faced by Ghanaian businesses. As the country navigates its economic crisis, it becomes imperative to strike a balance between revenue generation and creating a conducive environment for sustainable business growth.
