GH@67: navigating economic challenges towards a bright future

By Mohammed AWAL  

In the heart of West Africa, Ghana stands at a crossroads, grappling with economic challenges that demand both introspection and strategic action. From high levels of public debt to pervasive corruption and leadership issues, the nation faces a complex landscape.

Mary Addah, the Executive Director of the Ghana Integrity Initiative (GII), recently raised concerns about the country’s approach to combating corruption. According to her, the fight against corruption has been more rhetorical than action oriented.

“We have seen the state of corruption being fueled by rhetoric rather than action and most of the public sector institutions, including the executive are seen to be talking about the issue more than action. We have seen that in most instances we do a lot of public awareness and yet it does not reflect in actual investigations, prosecutions and sanctioning of the corrupt.

“And this has been fueled also by the restrictive nature of our legislation, particularly when it comes to the definition of what exactly corruption is and so people get away with all sorts of wrongdoing,” she told Accra-based Citi TV.

In its latest report, the local branch of Transparency International, GII, revealed that Ghana achieved a score of 43 out of a perfect 100 in the Corruption Perceptions Index (CPI) 2023. The country was positioned at the 70th spot among the 180 countries and territories assessed. The CPI, released on January 30, 2024, by Transparency International (TI), highlights the persistence of stagnation in Ghana’s anti-corruption initiatives for the fourth consecutive year, as per the index.

The country loses more than US$3 billion every year through corruption, the Commission on Human Rights and Administrative Justice (CHRAJ, said and the amount is said to be about 300 per cent of all the aid it receives in the same period, according to a study by IMANI which looked at procurement losses in the reports of the Auditor General between 2012 and 2014 and compared it to the aid received by the country.

Transparency International attributed Ghana’s lack of progress to the declining state of the justice system. According to the organization, this deterioration is diminishing the accountability of public officials, thereby creating an environment conducive to the flourishing of corruption.

Despite widespread public awareness regarding corruption, there has been a lack of prosecutions and sanctions for wrongdoings or corrupt practices.

However, amidst these hurdles lies a history of resilience, innovation, and the potential for a prosperous future.

The Economic Landscape

The Executive Board of the International Monetary Fund (IMF) earlier this year successfully concluded the review of the 36-month Extended Credit Facility (ECF) Arrangement, amounting to US$3billion, which was initially approved on May 17, 2023. Additionally, the assessment encompassed the 2023 Article IV Consultation with Ghana.

The completion of the inaugural ECF review enables the immediate disbursal of an additional US$600 million, bringing the total disbursements under the arrangement for Ghana to approximately US$1.2billion.

Ghana’s economic trajectory has witnessed considerable fluctuations over the years. Despite periods of robust growth and overall macroeconomic stability, challenges such as escalating inflation, depreciation of the exchange rate, and depletion of external buffers have persisted.

These issues primarily stem from overly accommodating fiscal policies. More recently, profound external shocks compounded existing fiscal and debt vulnerabilities, intensifying economic and financial strains in 2022.

Corruption compounds the issue, with Ghana ranking 72nd in the 2022 Corruption Perceptions Index.

The Leadership Dilemma

Poor leadership and governance have also hindered Ghana’s progress. A lack of political will to implement vital reforms and create an enabling environment for growth exacerbates existing problems. As the nation celebrates its 67th Independence Anniversary, it is crucial for leaders to reflect on the sacrifices made by Ghana’s founding fathers and to recommit to principles that underpin its independence.

Path to Redemption

Ghana’s youth grapple with high unemployment rates, fostering feelings of despondency and frustration. However, it’s essential to acknowledge Ghana’s rich history of resilience and innovation. Despite the challenges, opportunities for growth and development exist. As the nation commemorates its independence, a reminder emerges that progress is achievable, provided concerted efforts are made.

Addressing Ghana’s economic challenges necessitates collaborative efforts from leaders and stakeholders. Policies promoting fiscal responsibility, transparency, and accountability are crucial. Investments in key sectors like agriculture, manufacturing, and technology, along with support for small businesses, can drive economic growth.

Prioritizing education and skills development is paramount to equipping the youth with tools for success in the modern economy. Ghana’s leaders must create an environment that fosters entrepreneurship and innovation, laying the foundation for sustainable economic development.

Conclusion

As Ghana undertakes bold economic reforms, efforts to protect vulnerable populations must be at the forefront. Social protection programs, increased benefits, and allocations towards education and health sectors aim to mitigate the impact on those most in need.

Ghana’s journey towards economic recovery demands resilience, commitment, and strategic planning. The 67th Independence Anniversary serves as an opportune moment for reflection and recommitment to principles that can pave the way for a brighter and more prosperous future.

By addressing these challenges head-on, Ghana has the potential to emerge as a beacon of growth and resilience in the region and beyond.

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