Accra, March 07, GNA – Professor Kwesi Botchwey, Ghana’s longest serving Finance Minister, has urged the Government to recognise that the economy is in crisis and “level with the people” to win their support in the implementation of key economic policies.

He said the country needs to build consensus and create the political space around the reforms necessary to restore the nation’s credit worthiness.

“Recognising that you’re in crisis is the first thing to do in addressing the problem. We must be sincere about it and level with the public to win their support.”

“… The crisis is here and if it is not resolved, it will lead to a catastrophe. I’m not saying we should press the panic panic button but we should also not sit idle,” he said.

Prof Botchwey, who served as Finance Secretary in the Military led Provisional National Defence Council (PNDC) Era as well as the Finance Minister during the National Democratic Congress civilian rule, all under late Jerry John Rawlings, made the remarks when he delivered an Independence Day Lecture organised by the Department of Economics, University of Ghana, in collaboration with the One Ghana Movement, a civil society organisation.

It was on the topic: “On the State of the nation’ economy and politics; 65 year’s after independence, the path to sustainable development and democratic consolidation.”

Prof. Botchwey said the country’s rising debt to GDP ratio, inflation rate, drop in credit worthiness rankings, fast depreciation of the cedi against the US dollar, rising cost of fuel among other economic indicators, suggested that the country was in ” severe economic distress.”

“Foreign investors have withdrawn close to $200 million in January alone. It’s actually not the end of the world but we are not exactly sitting pretty,” he said.

Prof. Botchwey said measures to address the country’s current economic challenges should not be hinged on assistance from the International Momentary Fund (IMF).

He said the country must rather own its ecomonic policies by deploying homegrown strategies to resolve the problem.

“I agree with the principle of natural ownership of ecomonic policy. Borrowed money comes with strings attached. There’s nothing like free money. The basic conditionality for any creditor is fiscal discipline,” he said.

Prof. Botchwey urged the citizenry to accept that putting the nation’s economy back on track would come with difficulties in the short term.

He said there was the need for both the Government and the citizenry to make some sacrifices “in this difficult times” to ensure that the country was not plunged into any unbearable catastrophe.

“We must endure some level of pain but the real issue is how we distribute the hardship in an equitable manner,” he said.
GNA

Accra, March 07, GNA – Professor Kwesi Botchwey, Ghana’s longest serving Finance Minister, has urged the Government to recognise that the economy is in crisis and “level with the people” to win their support in the implementation of key economic policies.

He said the country needs to build consensus and create the political space around the reforms necessary to restore the nation’s credit worthiness.

“Recognising that you’re in crisis is the first thing to do in addressing the problem. We must be sincere about it and level with the public to win their support.”

“… The crisis is here and if it is not resolved, it will lead to a catastrophe. I’m not saying we should press the panic panic button but we should also not sit idle,” he said.

Prof Botchwey, who served as Finance Secretary in the Military led Provisional National Defence Council (PNDC) Era as well as the Finance Minister during the National Democratic Congress civilian rule, all under late Jerry John Rawlings, made the remarks when he delivered an Independence Day Lecture organised by the Department of Economics, University of Ghana, in collaboration with the One Ghana Movement, a civil society organisation.

It was on the topic: “On the State of the nation’ economy and politics; 65 year’s after independence, the path to sustainable development and democratic consolidation.”

Prof. Botchwey said the country’s rising debt to GDP ratio, inflation rate, drop in credit worthiness rankings, fast depreciation of the cedi against the US dollar, rising cost of fuel among other economic indicators, suggested that the country was in ” severe economic distress.”

“Foreign investors have withdrawn close to $200 million in January alone. It’s actually not the end of the world but we are not exactly sitting pretty,” he said.

Prof. Botchwey said measures to address the country’s current economic challenges should not be hinged on assistance from the International Momentary Fund (IMF).

He said the country must rather own its ecomonic policies by deploying homegrown strategies to resolve the problem.

“I agree with the principle of natural ownership of ecomonic policy. Borrowed money comes with strings attached. There’s nothing like free money. The basic conditionality for any creditor is fiscal discipline,” he said.

Prof. Botchwey urged the citizenry to accept that putting the nation’s economy back on track would come with difficulties in the short term.

He said there was the need for both the Government and the citizenry to make some sacrifices “in this difficult times” to ensure that the country was not plunged into any unbearable catastrophe.

“We must endure some level of pain but the real issue is how we distribute the hardship in an equitable manner,” he said.
GNA