Mahama's proposed solutions to Ghana's economic woes

Former President John Dramani Mahama has provided some solutions that help achieve a sustainable Ghanaian economy. Speaking at a forum dubbed "Building The Ghana We Want" at the UPSA auditorium, Thursday, October 27, the 2020 NDC flagbearer stated that Ghana's economy has lurched from crisis to crisis, ultimately resulting in the most debilitating living conditions in several decades. He observed that within a space of ten months, the Ghana Cedi, has depreciated by over 62% against the US dollar, something that is the highest in recent memory. Mahama noted Ghana's public debt is projected to hover around GH¢522 billion by the close of this year, with a corresponding debt-to-GDP ratio of above 100%. He said, the debt service obligation arising from this is monstrous and, is making it impossible to finance almost all critical sectors of the economy. Ghana's wage bill, the former President observed had shot up through what he described as unbridled recruitment into all sectors of the public service resulting from a poor capacity of the private sector to mop up the teeming youth graduating from all levels of our educational system. "Worse still, Ghana has been classified as the country with the highest likelihood of debt default, which reflects the multiple downgrades by the international credit agencies," he stressed. In building that dream Ghana, former President John Dramani Mahama proposed that the managers of the economy under President Nana Addo Dankwa Akufo-Addo must among others: "a) Reducing the public debt, debt service obligations and creating fiscal space: The biggest problem with our economy today is the huge size of our public debt, estimated to be around GH¢ 522 billion by close of this year. This must immediately be tackled and stopped from growing further. b) Cutting cost, reducing waste, and spending wisely: One other major problem that has brought us to this point is the reckless and frivolous spending of our scarce national resources. A fundamental principle in economic management is fiscal discipline even in times of crisis. It is simply not possible to live beyond our means and avoid the kind of economic turmoil we are in today. Rampant over-expenditure has been reflected in the extraordinarily large budget deficits of the last two years, which is set to persist for a third straight year if urgent cost cutting measures are not taken. c) Stabilizing the currency, cutting the import bill and job creation: My brothers and sisters, the above remedies represent some of the short to medium-term proposals for government to mitigate the total collapse of the Ghanaian economy. There is, however, the need for broad, long-term economic, governance and structural reforms that will guarantee sustained socio-economic growth for our country and help us avoid some of the mistakes that have led us to this perilous point. Our governance structure and institutions are in urgent need of reforms to make them more responsive and in tune with the aspirations and hope of the Ghanaian people. Find below Mahama's full speech: PEN/SARA