The African Development Bank (AfDB) has approved a sustainable borrowing policy to address post-COVID-19 issues.
The COVID-19 outbreak has put further burden on government budgets. *The situation has deteriorated as a result of countries’ extraordinary relaxation of fiscal and monetary policy in order to cushion the socioeconomic effects of the pandemic*.
According to the African Development Bank (AfDB), *African countries would need an extra US$154 billion in 2020 to combat the COVID-19 pandemic*.
To solve this quandary, the Sustainable Borrowing Policy establishes two debt-management pillars. Through agreed-upon policy initiatives and technical help, the first pillar stresses debt management and transparency.
A second pillar will be based on collaboration and collaboration with other multilateral development banks, development partners, and lenders.
*Comments by Razak Kojo Opoku*
Since multilateral banks such as the AfDB are taking pragmatic steps to address the post COVID-19 situation, I respectfully urge Ghanaians to ignore the noise of NDC MPs and support Akufo-government Addo’s in its quest to use a homegrown policy such as the E-levy to revive and sustain the Ghanaian economy post COVID-19.
Domestically, we have the potential to assist our economy with US$1 billion per year via E-levy without borrowing the same amount from the IMF and increasing the country’s debt to GDP ratio.
Would you take out a loan on a family or personal level if you had a property that you can sell to generate the precise amount of money you need for the loan?
Over the years, it has been shown that the World Bank and IMF have always collaborated to prescribe unrealistic economic parameters as the solution to Ghana’s and African countries’ socioeconomic progress.
However, the so-called assistance provided by the World Bank and IMF in the form of loans and grants can best be described as miserly donations in exchange for policy measures that are not practicable within the economic environment and the local architecture of our economy, effectively turning back the clock on our progress since our political independence 65 years ago.
We are politically autonomous, but economically we are heavily reliant on the West, the World Bank, and the IMF.
As is customary, certain local Ghanaian intellectuals in academia or Civil Society Organizations that rely heavily on World Bank, IMF, and Western Donors for financing are always scared to criticize them for fear of losing their financial support. It’s a matter of personal interest vs. public interest. These intellectuals were the first to recommend to the government the IMF and World Bank as the greatest alternatives for the country’s economic viability.