The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has accused all politicians in Ghana of tilting economic figures in their favour.
He says it is incumbent on independent economists to explain the facts to ordinary Ghanaians.
Speaking on the Ghana Tonight show on TV3 Monday, February 12 in relation to the address delivered by Vice President Dr Mahamudu Bawumia, Dr Kwakye said “When you listen to all the politicians they always try to slant the figures in their favour, that is what all politicians do …it doesn’t matter if it is the NPP or NDC that makes some kind of declaration, when whoever makes it and I feel that as an economist I don’t understand or I don’t think that is the right thing I will come out and straighten it.”
In his address at the University of Professional Studies, Accra (UPSA) on Wednesday February 7, Dr. Bawumia argued that the NPP managed the economy prudently and efficiently during 2017-19 and managed to turn it around from the precarious situation from which they inherited it in 2016.
Dr. Bawumia cited economic growth, inflation, fiscal deficit, debt, and depreciation, among others, as all pointing in the right direction during the period.
Dr. Bawumia also cited the additional adverse effects of the huge financial bailout costs and legacy excess-capacity energy payments.
Assessing the address by Dr Bawumia, Dr Kwakye indicated that “Available data for key macroeconomic indicators for 2016-2023 show that many of the indicators trended positively during 2017-19. These must be attributed in part to the Government’s policies, including the introduction of the Fiscal Responsibility Act in 2018, which limited the fiscal deficit to 5% of GDP.
For the 2020-22 period, while accepting the contribution of the exogenous factors mentioned by Dr. Bawumia to the poor economic outcomes, some of the domestic policy failings must also be recognised. These included: huge expenditure outlays on numerous flagship programmes and a bloated government; failure to increase revenue from traditional sources; and excessive and expensive borrowing from the international capital markets even as the public debt continued to rise to an unsustainable level. Failing to recognise these policy failings represented a missing link in Dr. Bawumia’s speech.”
He added that it is important that as government takes credit for the good economic performance during 2017-19, it must also be prepared to accept some responsibility for the poor performance during 2020-22.
“That is what governments in matured economies, such as US, UK, France and Germany, do. It is how you respond to the prevailing situations that you will be judged by.”
By Laud Nartey
