Ghana's pursuit of deeper ties with the BRICS bloc will not automatically solve its long-standing economic problems. This is the central warning from a policy paper by Ghanaian banking consultant Dr. Richmond Akwasi Atuahene. The paper argues that Ghana's economic destiny depends more on what it produces and trades, rather than which international groups it joins.
The consultant's paper, titled 'Ghana Joining BRICS or Re-orienting Ghana’s Economic Destiny', questions the true impact of BRICS membership. It highlights that Ghana continues to export raw gold, cocoa, and crude oil. At the same time, the country imports large amounts of finished goods, processed food, vehicles, and industrial inputs. This structure, the paper suggests, is a key reason for Ghana's repeated debt distress and currency depreciation.
This economic structure has consistently led Ghana into financial difficulties, including 17 engagements with the International Monetary Fund (IMF) since independence. The most recent crisis resulted in a US$3 billion IMF-supported programme. This situation has caused significant pressure on businesses and household incomes across the country. The debate over BRICS membership brings focus back to these fundamental issues affecting Ghanaian households and businesses daily.
Dr. Atuahene states, "External economic alliances are tools, not cures." He adds, "Whether aligned with the global West or the global South, Ghana will remain economically fragile as long as its core economic structure remains colonial." This statement emphasizes that without changing its internal economic model, Ghana will continue to face vulnerabilities regardless of its international partners.
The implications of this analysis are significant for Ghana's economic policy direction. While BRICS may offer new markets and alternative financing, it cannot address internal issues like local poultry production or increasing rice yields. It also cannot compel prudent management of public money. Decision-makers must focus on structural reforms to diversify the economy and reduce reliance on raw material exports. This includes promoting local processing and manufacturing to create more jobs and reduce import dependency.
The BRICS bloc, initially comprising Brazil, Russia, India, and China, expanded to include South Africa in 2011. It aims to offer an alternative to the Western-dominated global financial system. Developing countries often express dissatisfaction with institutions like the IMF and World Bank, which they believe give too much influence to advanced economies. United Nations Secretary-General António Guterres noted that the post-World War II system was created by rich countries for their benefit, with African nations largely excluded from its formation.
BRICS has established institutions like the New Development Bank, which finances infrastructure projects. It also has the Contingent Reserve Arrangement, providing financial support during balance-of-payments crises. The bloc encourages using local currencies in cross-border trade to reduce reliance on the US dollar. For Ghana, these objectives hold appeal given its history of balance-of-payments crises and sharp exchange-rate depreciation. However, the core message remains that these external mechanisms are not a substitute for internal economic transformation. Ghana's ability to process its own cocoa, refine crude oil, and restore polluted rivers will ultimately determine its economic resilience.