The Trades Union Congress (TUC) has cautioned that Ghana risks remaining dependent on the International Monetary Fund (IMF). This continued reliance could persist unless the nation adopts economic policies that prioritize production.
Dr. Kwabena Nyarko Otoo, the Deputy Secretary General of the TUC, explained that the country’s current path risks weakening efforts for lasting economic improvement and job creation. He made these critical observations during a discussion on a current affairs program. These comments follow Ghana’s recent exit from an IMF-supported Extended Credit Facility program. The country has now entered a 36-month Policy Coordination Instrument arrangement with the Fund.
Ghana’s frequent need for IMF support stems from more than just unexpected global events. It also arises from economic strategies that favor stabilizing the economy over growing productive sectors. Policymakers often continue using IMF-style approaches even after a program ends. This creates a cycle of dependence that does not encourage factory building or widespread development.
Dr. Otoo stated, "The IMF leaves and may not even give us money, yet the people in our ministries and at the Bank of Ghana are so addicted to IMF policies that do not ensure production." These implemented policies have contributed to an economy heavily reliant on imports. This situation limits the creation of jobs and the ability to add value to locally produced goods.
He further pointed out that while recent economic numbers look good, such as improved foreign currency reserves, these do not necessarily mean people’s lives are better. "Take gold prices out of the equation and assess where the economy would have been," Dr. Otoo urged. Gains from higher prices for goods sold internationally, especially gold, have significantly boosted Ghana's current economic picture. Local initiatives, like buying gold locally, have also helped stabilize the economy.
The TUC emphasizes the urgent need for policies that actively promote local manufacturing. They also need to encourage industrial growth and create good jobs. These actions are vital for long-term economic and social stability. "Our challenge is to ensure that macroeconomic stability translates into social stability. That means creating decent jobs and building a productive economy," Dr. Otoo stressed.
Dr. Otoo called for a thorough review of Ghana's economic strategy. This review must aim to reduce reliance on imported goods and increase the value created within the country. Without these significant reforms, Ghana could find itself repeatedly seeking assistance from IMF programs. This cycle may continue even if the economy shows temporary signs of recovery.