To remove any fiscal obstacle that will prevent a new government from implementing their manifesto promises, Economist at the University of Ghana Business School, Prof. Godfred Bokpin is recommending that the political party or individual that wins the 2024 General Elections renegotiates the current IMF programme.
Prof. Bokpin believes that given the limitations and constraints posed by the programme, any government that wins power might not be able to fully implement its economic policies.
In a recent interview with The High Street Journal, the economist emphasized that the good thing is the IMF programmes are not cast in stone hence there is an opportunity for renegotiation.
With a renegotiation, Prof. Bokpin is convinced that fiscal space could be created so that the new government can implement the social contract based on which the electorates voted for them. According to him, the party that wins the election comes to power based on promises made to citizens, and these promises must not be stifled by existing IMF agreements.
“What we need to do is IMF has brought constraints. It is not cast in stone. I believe that any party that wins the elections, the IMF should be open to some negotiations and discussions. Because they are coming on the basis of a social contract with the citizens based on the manifesto so certainly the IMF cannot say hey we have a program so nothing can be done about it,” Prof. Bokpin explained.
To buttress this recommendation, Prof. Bokpin cited how the New Patriotic Party (NPP) government, upon taking office in 2017, inherited an IMF programme that had not anticipated key national policies like the Planting for Food and Jobs initiative and Free Senior High School (SHS) policy. Despite these constraints, the government was able to create room to implement these policies through a renegotiation of the existing IMF program.
These policies weren’t part of the original IMF arrangement but after the steps by the government to renegotiate, spaces were created for them remarking that “space is never conferred; it has to be created.”
Despite the window of opportunity for renegotiation, Prof. Bokpin emphasized the importance of presenting a well-thought-out, financially responsible plan to the Bretton Woods Institution. He urged future governments to clearly outline their cost-saving measures and demonstrate a strong ability to execute bold, transformative initiatives that can drive growth without jeopardizing fiscal stability.
This recommendation of the economist comes at a time when political parties and presidential candidate aspirants are making ambitious campaign promises aimed at addressing key national concerns such as unemployment, education, and food security.
With voters keenly watching how these promises will be funded and implemented, Prof. Bokpin’s call for a renegotiation of IMF constraints brings into question the feasibility and a clear path of implementing these manifesto promises.
