Professor John Gatsi urges Ghana to strengthen its financial system to cease reliance on IMF bailouts, attributing this dependence to poor economic management. He proposes developing robust financial policies to ensure autonomy, emphasizing disciplined fiscal measures and strategic investments. Ghana’s history of turning to the IMF, including a 2022 bailout, underscores the urgency of these reforms.
Professor John Gatsi, an economist and member of the National Economic Dialogue Planning Committee, advocates for Ghana to enhance its financial system to eliminate dependence on the International Monetary Fund (IMF) for bailouts. He attributes Ghana’s recurring reliance on the IMF to inadequate economic management. By establishing robust financial safeguards, Ghana can effectively navigate economic challenges independently.
Historically, Ghana has sought assistance from the IMF 17 times, the most recent being a $3 billion bailout secured in 2022 amid economic downturns. The nation continues to grapple with high levels of debt, low revenue, and budget deficits, further complicating efforts to achieve financial stability.
As the Dean of the University of Cape Coast Business School, Professor Gatsi emphasizes the need for the development of comprehensive financial policies to eliminate future reliance on IMF programs. He advocates for disciplined fiscal practices, enhanced revenue collection, and strategic investments in critical sectors to achieve financial autonomy.
Professor Gatsi further stated, “We will not be drifting towards the IMF at the least financial distortions or at the least threat that is directed towards the finances of this country. We will be robust, solid, and we will be relying on the buffers that we build rather than going to the IMF.”
In conclusion, Professor Gatsi highlights the necessity for Ghana to fortify its financial infrastructure to reduce reliance on IMF bailouts. By addressing poor economic management through disciplined fiscal policies and strategic investments, Ghana can safeguard its economic stability and attain financial independence. The emphasis on developing strong financial buffers is crucial for overcoming future challenges without external assistance.
Original Source: www.gbcghanaonline.com
