Last week, ex-President John Mahama launched an attack on the government’s economic policy.
Yet, there is concern that his criticism goes against economic expertise and the lessons of history.
In his intervention, Mahama called for a ‘national dialogue’ to solve the economic challenges facing the country.
Mahama points to the ‘Senchi Summit’ that he organised in 2015 with the hope of dealing with very high energy prices for Ghanaians.
The summit, however, failed to reduce energy prices. Energy prices were reduced when the NPP government stopped signing expensive contracts that Mahama signed himself.
So, common sense won against warm words.
It is also important to note that Mahama’s energy crisis in 2015 cannot be compared to the current global economic crisis.
In 2015, the global economy was growing, and the bad times were limited to Ghana.
Today, the US, China, and Europe have shrinking economies and high debt. The price of fuel and food is also high across the world.
This winter, wealthy Germany may have to turn off the lights of its citizens.
So, comparing now to the difficult times under the NDC is like saying blue is the same as red.
Mahama has also said that the current government has no plans to fix the economy.
This doesn’t seem to be true. While this is a hard moment for Ghana, the government looks to be following the economic rulebook to solve Ghana’s challenges.
The government is taking steps to support the cedi – economists say this will help reduce the price of fuel and food.
The government is also in talks with the IMF to stabilise debt and continue economic growth – economists confirm that IMF programmes are sensible precautions for developing nations.
A difficult moment, no doubt, but Ghana will recover as it follows the economic rulebook and learns the lessons from history.
Populist interventions, therefore, should come second to following expert economic guidance.
This post was published on August 15, 2022 7:53 PM