Ghana’s IMF Dependency Is Cyclical Trend
A lecturer at KAAF University College, Dr. Eric Bimpong, has described Ghana’s recurrent reliance on the International Monetary Fund (IMF) as a cyclical pattern in the country’s economic trajectory.
During a panel discussion on Opemsuo Radio’s Nkwantannanso with Kofi Boakye, he lamented Ghana’s propensity to enter into IMF programmes as a routine response to economic challenges, rather than implementing sustainable long-term solutions.
He emphasized that Ghana’s repeated engagements with the IMF reflect a concerning trend of cyclical dependency rather than genuine economic reform.
Dr Bimpong pointed out that Ghana’s history with the IMF spans several decades, with the country periodically seeking financial assistance and policy guidance from the international organization.
He blamed the economists in Ghana, asseting that they are only good at propounding theories. According to him, these economists excel in academia but struggle when confronted with practical scenarios in the field.
“We have fantastic economists in Ghana. When it comes to theory, we can propound but when it comes to the practicals, that’s where the problem is. If after 67 years, this is how we are, then there is no hope for Ghana.”
Ghana’s Journey With IMF
This journey began in 1966, following the overthrow of Dr. Kwame Nkrumah by the National Liberation Council. Subsequently, between 1966 and 1969, the military government embarked on stabilization efforts with the IMF.
In 1979, Ghana returned to the IMF fold after years of economic mismanagement, marked by careless spending and corruption. This period saw the initiation of the “Operation Feed Yourself” agricultural campaign under General Ignatius Kutu Acheampong, which aimed to bolster food production but ultimately faltered.
Flt. Lt. Jerry John Rawlings later led a revolution, leading to further economic turmoil and Ghana’s subsequent return to the IMF for bailout assistance. During Rawlings’ regime, Ghana experienced severe economic challenges, leading to multiple engagements with the IMF, notably in 1987 and 1988.
In the mid-1990s, Ghana participated in global debt cancellation initiatives, leading to the elimination of significant portions of its debt. This trend continued into the early 2000s, with further debt relief efforts under President John Kufuor’s leadership.
In 2015, Ghana faced economic difficulties exacerbated by the “dumsor” power crisis, prompting yet another IMF bailout request.
Then in 2022, Ghana announced its return to the IMF for a bailout, citing economic downturns exacerbated by the COVID-19 pandemic and global crises.
Story by Adwoa S. Danso
