Professor of Economics at Johns Hopkins University in the USA, Steve Hanke, has again questioned government’s decision to enter an economic support programme with the International Monetary Fund.
Last week, President Akufo-Addo defended the decision by stating that a possible bailout from the Bretton Woods institution will in the short-run repair Ghana’s public finances which have been impacted significantly by recent economic developments.
“In our case, we have decided to see the collaboration with the International Monetary Fund to repair in the short run, our public finances, which have taken a severe hit in very recent times,” President Akufo-Addo earlier said.
Reacting to the comments, Professor Steve Hanke, who has been an ardent critic of government’s decision to enter an IMF programme, opined that the move will not save the Ghanaian economy nor will it restore public finances.
He argued that the previous 17 IMF programmes that Ghana has participated in, never restored anything in the economy as they all failed.
“Ghana’s President Akufo-Addo says an IMF bailout is “necessary to restore public finances.” SPOILER ALERT: None of Ghana’s previous 17 IMF bailouts restored anything. They all failed,” he wrote via Twitter on July 11.
Ghana’s Pres. Akufo-Addo says an IMF bailout is “necessary to restore public finances.” SPOILER ALERT: None of Ghana’s previous 17 IMF bailouts restored anything. They all failed. https://t.co/u0SSWExgCl
— Steve Hanke (@steve_hanke) July 11, 2022