Professor Kwesi Botchwey, a former Finance Minister, believes Ghana’s current economic issues may be overcome if the government is honest with Ghanaians.
“Our current difficulties can be overcome if we are honest with the people. Recognizing that there is a problem is the first step toward solving it. It must begin with an acknowledgement that there is a crisis and a willingness to work with the people. We need to reduce the people’s perceptions of arrogance, hubris, and impunity.”
On Monday, March 7, 2022, he made this statement while presenting at the University of Ghana’s Economics Department’s 65th Independence Day Lecture.
“On the situation of the nation’s economy and politics, 65 years after independence, the way to sustainable development and democratic consolidation,” was the topic of the talk.
He went on to say that consistency in economic planning and democratic consolidation are two factors that influence economic policy decisions.
These, he believes, should be considered as potential answers to the economy’s current predicament.
Ghana is now grappling with massive governmental debt and revenue generation issues.
The Electronic Transfer Levy, often known as the E-Levy, was launched as part of efforts to increase the country’s income collection push, but the idea was widely opposed by Ghanaians.
Ghana’s debt ratings were also lowered to Caa1 from B3 by major financial rating agencies such as Moody’s Investor Service (Moody’s).
According to the report, Ghana’s new economic grade reflects the country’s difficulties in resolving its liquidity and debt problems.
“The reduction to Caa1 shows the government’s increasingly onerous task of dealing with its interwoven liquidity and debt problems. The government’s budget flexibility is limited by low revenue generation, and tight funding conditions on international markets have compelled the government to rely on pricey debt with shorter maturities.”
Despite the fact that significant economic observers have encouraged the government to seek a bailout from the International Monetary Fund, the government has refused to do so.
