The Trades Union Congress (TUC) has blamed Ghana’s high unemployment rate and its economic challenges on the implementation of the International Monetary Fund’s (IMF) credit facility programme.
It said the program, which came into force, years ago, has worsened the plight of Ghanaians, especially those of active working age, and therefore it welcomes its completion by December 2018.
The General Secretary of the TUC, Dr Yaw Baah, who described the country’s economic policies are failures said it was time government ended the IMF program to correct the worsening situation in unemployment in the country.
Speaking at the this year’s May Day celebration in the Ashanti Regional capital, Kumasi, Dr. Baah said, “We hold the strong view that the current unenviable employment situation in our country can be attributed mainly to policy failure. In the last three decades, Ghana has religiously implemented free-market capitalist policies and programs sponsored by the International Monetary Fund. These bad policies and program have brought only misery to the majority of Ghanaians directly or indirectly. That is why we support government’s decision to end the IMF Program this year. No country has prospered by implementing IMF policies and programs, and Ghana will not be the first to do so,” he said.
While expressing confidence in the Akufo-Addo government’s ability to lead, he said a selfless leader of the nation must lead the country away from corruption, indiscipline and laziness.
“We believe that there are other policy options that can bring prosperity to all Ghanaians. What we need is a selfless leader who will lead us away from corruption, ineptitude, laziness, indiscipline, poverty, ignorance and superstition to a path of hard work, patriotism and prosperity… Mr. President we are confident that you and your government can do that for Ghana through a stronger social partnership which will include all Ghanaians in the economic and social development process,” he said.
About IMF credit facility
Ghana in 2015, signed an agreement for economic assistance from the International Monetary Fund.
The deal concluded with funding support of 918 million dollars to be disbursed under eight tranches.
Some critical issues that have dominated the signing of the agreement include the freezing of public sector employment, reducing the budget deficit, and zero financing of the budget deficit by the Bank of Ghana.
Senior Minister, Yaw Osafo Maafo at his vetting, indicated that the NPP government would review the deal.
The IMF had also asserted that it would consider a possible extension should the government make an official request to that effect.
The Finance Minister, Ken Ofori Atta, also stated that the government is committed to ending the program in 2018.
The Executive Board of the International Monetary Fund (IMF) on Monday completed the fifth and sixth reviews of Ghana’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement.
Completion of the reviews enables the disbursement of about US$191 million, bringing total disbursements under the arrangement to approximately US$764.1 million.
A statement from the Fund said during the review; adjustments were made to the program to ensure that it remains on track and to enhance its prospects of success. In this context, the Executive Board also granted waivers, including for deviations from a few program targets.
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By: Jonas Nyabor/citinewsroom.com/Ghana