Economist and Chief Operating Officer of Dalex Finance, Joe Jackson says exiting the International Monetary Fund (IMF) completely does not really tell the full story.
According to him, this is not a graduation, instead it is probation with more freedom and that Ghana has stabilised but the focus must be on fiscal discipline.
He also believes that Ghana has shown tremendous discipline in the way it spends but now will have to prove that it can do it without a lender (IMF) holding its hand.
Ghana has officially concluded its three-year IMF bailout programme, marking a key milestone in the country’s economic recovery efforts.
Ghana will now move into a non-financing policy support arrangement aimed at sustaining reforms and strengthening macroeconomic stability.
Speaking on the 3FM’s “Hot Edition” show with Host, Martin Asiedu–Dartey on May 15, Joe Jackson noted, “ The IMF will tell us that the focus is on fiscal discipline; Debts sustainability is how we govern our state-owned enterprises; How our Cedi-Dollar and the foreign exchange rate policy, how stable our financial sector is, and how we can show inclusive growth. All these are part of what we have to do under the monitoring and credibility support programme. So, in other words, there is good news for the average Ghanaian”.
Joe Jackson warned that Ghana may not be out of the woods yet despite the announcement of an exit, alluding to how this would translate into real benefits for families.
“There’s an honest part to this. Stability is not that same as prosperity. And so, you would say, ah, this is not food prices; This is not transportation; This is not rent, drugs; This is not school fees, electricity or income. This one will not be judged by IMF press releases.
It will be judged by how the Ghanaian feels. So, to sum it up, Ghana was in an emergency ward. Just 18 months ago, we were still in crisis. We have left the emergency word. We have left the hospital. We’ve been brought home but we are not fit enough to run a marathon. To do that, we have to show that we are fit; To do that, we have to exercise the discipline without the IMF holding a big stick over our heads,” he explained.
He also advised the Government to borrow wisely and to borrow to invest in projects that will yield good returns.
“What do we mean by a fiscal discipline? It means don’t spend money that you don’t have; It means keep spending only money that you have; It means if you have to borrow, you borrow wisely. You borrow to invest in the projects that will help pay for the borrowing. We don’t borrow to consume; We don’t borrow to do free SHS; We don’t borrow to pay teachers training allowances and all the other things we have done in the past. That’s the only way we can show that over this next regime, you are ready to run a marathon,” Mr Jackson stressed.
By Richard Bright Addo
