Accra, Ghana – May 16, 2024 – Dr. Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress Ghana, has strongly criticized Ghana’s persistent reliance on International Monetary Fund (IMF) programmes, asserting that these policies fail to foster domestic production and sustainable economic transformation. Speaking on the “Newsfile” programme on Saturday, Dr. Otoo highlighted concerns that the current economic direction, including plans for private sector involvement in the Electricity Company of Ghana (ECG), perpetuates structural challenges and leaves the youth jobless.
Addiction to Ineffective Policies
Dr. Otoo articulated a stark warning: “We are too addicted to IMF programmes that do not ensure production in our part of the world.” He elaborated that despite achieving periods of macroeconomic stability, Ghana remains an import-driven economy. This economic model, he argued, has led to social instability, with many young graduates struggling to find employment for years after completing their education.
“Our young people complete school and five or six years down the line, they still do not have jobs,” Dr. Otoo stated, underscoring the disconnect between national economic performance and the well-being of its citizens.
Opposition to ECG Privatization
The Deputy Secretary-General also addressed the government’s renewed efforts to introduce private sector participation in the ECG. Dr. Otoo characterized this move as an attempt to complete a long-standing privatization agenda that could not be realized through standard IMF programs. The Trades Union Congress, he assured, is fully prepared to resist any efforts to privatize the state-owned power distributor.
“Government is simply trying to complete the privatisation process which they could not do with a regular programme. I can assure you the unions are fully prepared and will do everything possible to ensure ECG is not privatised,” he declared.
ECG’s Progress Undermined?
Contrary to the rationale often presented for privatization, Dr. Otoo presented data suggesting ECG is already demonstrating significant improvement. He cited revenue collection figures, stating that ECG’s collections rose from approximately GH¢900 million at the end of 2024 to GH¢2.1 billion currently. This progress, he contended, indicates that ECG does not require privatization and is on a positive trajectory.
“At the end of 2024, ECG was collecting about GH¢900 million. Today, ECG is collecting GH¢2.1 billion. Clearly, ECG is making progress,” he noted. He dismissed the push for privatization as ideological, asserting that there is no justifiable reason to transfer the operations of ECG to private entities when the company is showing positive results.
External Factors Influencing Economic Stability
Dr. Otoo further questioned the narrative of economic recovery often attributed to IMF interventions. He suggested that rising global gold prices, rather than the effectiveness of IMF policies, have been the primary driver supporting Ghana’s economy. He challenged economists to analyze the country’s economic standing without the influence of gold price fluctuations.
“Take gold prices out of the equation and let economists tell us where this economy would have been,” he urged, implying that a more fundamental assessment might reveal deeper underlying weaknesses.
Call for a Policy Paradigm Shift
The core of Dr. Otoo’s critique calls for a fundamental reorientation of Ghana’s economic policy framework. He advocated for a shift towards policies that prioritize protectionism, industrialization, and the creation of decent employment opportunities. Such a change, he believes, is necessary to ensure that macroeconomic stability translates into tangible social stability for the Ghanaian population.
“What we need is a whole change in policy framework so that we can begin to talk about protection, creating decent employment and ensuring that macroeconomic stability translates into social stability for the people of Ghana,” he concluded. The ongoing debate highlights a critical juncture for Ghana’s economic strategy, with significant implications for its future development and the welfare of its citizens.
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