Finance Ministers must always be held responsible for economic challenges - IEA

Economist, Dr. John Kwakye has challenged President Akufo-Addo's claim that the current finance minister, Ken Ofori-Atta, has discharged his duties well and therefore cannot be blamed for the ongoing economic challenges. The President speaking on Kumasi-based OTEC FM said there is no basis to sack Ken Ofori-Atta as he believes he has made the right decision to stick with him as his finance minister for a second term. “I came to office in 2017 under a stringent IMF programme. This same man was able to manage the affairs of our economy in such a way that the first four years of my first term, we were one of the fastest-growing economies in the world, an average growth rate of 7% a year from the beginnings of an IMF programme. “An economy that allowed us to initiate the programme Planting for Food and Jobs. So, somebody who has been able to do that and the current economic difficulties are not his faults. So how do I do that (sack him)? What will be the basis? What will be the rationale?” “If we were to say he didn’t do well in the first term, then I shouldn’t have repeated him for my second term? So, for me, their performance in my first term was excellent. Let me use that word. Excellent,” President Akufo-Addo said in an interview with the radio station. But Dr John Kwakye reacting to the comments argued that Finance Ministers must always be held responsible for the economic situation of every country and must therefore take the blame for such. “Finance Ministers must always be held responsible for a country’s economic problems no matter the source. Kwesi Kwarteng is a clear example,” The IEA director of research said in a tweet.

https://t.co/VRjd8xIjK9 Finance Ministers must always be held responsible for a country's economic problems not matter the source. Kwesi Kwarteng is a clear example.— J. K. Kwakye (@JohnKwabenaKwa1) October 18, 2022 He however noted that the solution to Ghana’s current economic challenges cannot rest solely on the International Monetary Fund and the World Bank. “The answer to our problems doesn’t lie in Washington. It lies right here in Ghana,” he stressed. Touching on the depreciation of the cedi against the US dollar, Dr. John Kwakye called for urgent interventions to slow down its depreciation which is now reaching alarming levels. Meanwhile, the International Monetary Fund has stated that Ghana's rising inflation is largely domestic-driven. According to African Director at the IMF, Abebe Selassie, Ghana is among countries whose inflation is caused mainly by internal factors. In September 2022, figures released by the Ghana Statistical Service showed that country’s inflation has risen to 37.2%, making it one of the highest in 20 years. MA/FNOQ Watch the latest episode of BizTech below: