Prof K. Prempeh Writes: Crisis hit Ghana turns to the IMF for help
I would have chosen a different header for this story, one that said something about hubris and eating humble pie. And instead of the President’s, a photo of a fella in white garb.
Lesson 1: When you are in charge of managing an internationally dependent and chronically over-exposed economy like Ghana’s, an economy that is structurally vulnerable to every little global shock, you must learn to talk with some modesty and tact about your real policy space and capabilities, as well as show some political savvy and anticipation in not ruling out options knowing full well that there are so many variables outside your control.
Far better managed economies have gone to the IMF. Get a grip! A little realism-induced humility wouldn’t hurt in these matters.
Lesson 2: For precisely the reason stated above (the fragility of our economy in terms of its exceptional vulnerability to external shocks), it is not smart politics to put all your eggs in the “better economic managers” basket, because some external hiccup can just come and wipe away and undo even your best efforts, leaving you holding nothing but your head in your palms.
Invest in good governance too, in minding some of the low hanging fruit, in reforming some of the little little things we often talk about here but which, done differently, can still make a very big difference in the way this country is governed. You have frankly far more control over the quality of governance than over how the economy turns out. Moreover, if you were to do an excellent job of the former, you could be forgiven if the economy didn’t quite turn out as promised.
But if you came selling yourself as the best economic turnaround guru since Adam and did not prioritize much else in the area of governance, thus running this place in a business-as-usual fashion or worse, you would be left gnashing your teeth and holding your hands in your palms should the economy get too hot for you to steer to safe harbour.
Lesson 3: Beware the echo chamber.
Lesson 4: If you can’t fire them, don’t hire them.
Lesson 5: Power is not knowledge, or wisdom. Pay attention!
