IMF bailout: Try and error policies don’t grow economy – Lord Mensah to Gov’t

A lecturer of Finance at the University of Ghana – Legon, Prof. Lord Mensah has criticized government for its failure to faction out and implement workable economic policies for the country.

Speaking on Starr News, Mr. Mensah indicated that he was among the few that cautioned the government that the E-levy cannot save the economy, but the government was adamant.

“I knew obviously that E-levy was a new thing that is being introduced onto the mobile platform and it will face reactions from the users of the platform. But the government keeps on shifting the goal post. The government gave us two options and for economic management you always have options.

“For prudent and optimum management, what you do is that you are managing the economy. You select the best option to maximize the usage of that option. Effectively we had the option of going to the IMF. Speaking on the E-levy, because they the people managing, they speak by the numbers and the projections that will favor the economy,” Mr. Mensah said.

He continued: “I believe that when they selected the E-levy and in the end that should be able to help us but then to turn around and come to tell us that you are going to the IMF within a month of the introduction and implementation of the E-levy it generates what we call policy uncertainty.

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“For me policy uncertainty does not grow the economy, you cannot do trial and error with the economic management. What is happening now seems to mean like, well, we have the resources available. Let’s test it and if it does not work we move on to that one.”

According to the lecturer, he knew the borrowing spree by the government will bring some challenges to the nation.

“We saw this coming because during the covid we were expecting the government to tone down and streamline our finances. We are used to reading budgets where we have huge budget deficits and all that but we keep on borrowing in the name of creating economic vibrancy.

“This economic vibrancy is not yielding anything that is expected of the economy. So the IMF will come and tone it down and in the process of toning it down it will have an impact on this economy.”