Governance think-tank, Alliance for Social Equity and Public Accountability (ASEPA) has said contrary to claims that the John Agyekum Kuffour led administration put Ghana’s economy on a solid footing, it rather wrecked the economy of Ghana.
According to it, Ghana’s economy was in shambles when the Kufour administration left office in 2009.
ASEPA said this was evident in a letter the World Bank wrote to the then President, John Evans Attah Mills of blessed memory paragraphs of which read “our Excellency President-Elect, As a close and trusted partner of Ghana, I feel that it is the World Bank’s responsibility to alert you even before you are sworn in of the difficult financial situation Ghana finds itself, and to offer the World Bank full support to you and your new Government in dealing with these difficulties”
“As you are well aware, the macroeconomic situation that your Government is inheriting is unfortunately extremely worrisome.
Both the fiscal deficit and the balance of payments deficit are high and at unsustainable levels.
Given the current state of the International financial markets, we do not believe that these deficits can be financed in 2009 as they were in 2008.”
Providing evidence to back claims of Ghana’s wrecked economy under J.A. Kuffour ASEPA intimated that “By the time the NPP exited power in 2009, Ghana’s real GDP stood at 9.1%, the overall macroeconomic situation had seriously deteriorated on the account of huge fiscal and current deficits.
The destruction was so monumental that fiscal deficit stood at 14.5% of GDP whiles arrears alone amounted to 22% of GDP and the Public debt stood 36% of GDP even after huge debt forgiveness from HIPC”.
The policy think thank said it it was until November 2009 when the Economic Management team headed by John Dramani Mahama was able to turn the fortunes of the country around.
“The second document I am going to show you will blow your mind…This is a report by the Standard Bank Group Limited in the UK in somewhere November 2009, less than a year after President Mills assumed office. The Standard Group carried out its independent assessment of the Ghanaian Economy and 24 other emerging markets. And within one year Ghana’s Economy which had been written off by the World Bank, has been turned around with the Ghana currency being the best performing currency among the 24 emerging markets the Standard Group carried this survey on.For the avoidance of doubt, the emerging markets included, Philippines, Malaysia, South Africa, Nigeria,Turkey, Russia, Mexico, Poland, Hungary,Brazil Chile, Israel,Botswana and others and yes the Ghana Economy was on top of the list as the number one best performing emerging markets as far as our currency was concerned.”
ASEPA called on the NPP government to desist from touting itself as better managers of the economy because it has and continues to wreck the country’s economy.
Source: MyNewsGh.com/ Ayeh Offei-Akoto/2020