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Jinxed Debt-to-GDP Ratio

By Daily Guide
Editorial Jinxed Debt-to-GDP Ratio
OCT 14, 2014 LISTEN

Ghana's debt-to-GDP ratio is now a jinxed affair. It is unsurprising because the economy of the country has depended upon lies for far too long.

Ghanaians have hardly been fed with the true details of the economy. The truth has always been known to only those conversant with the rather challenging terrain of economics, macro et al. The truth is a guarded secret kept perhaps only by the government propagandists. Unfortunately the experts of the subject have not failed to let out the truth regardless of the insults they have attracted from those guarding the vault.

As for the laymen they are at the mercy of the propaganda machinery of government—a situation which has led to varied repercussions, even calls for spiritual interventions.

One of the effects of the jinx which has infected the debt-to-GDP ratio is the exhibition of a rare attribute by the IMF. Vacillation is not known to be a characteristic of the Bretton institution. It came as a surprise therefore that they beat a retreat somewhat by readjusting what they had earlier put out, falling short of apologising about an error. Was it an error or a re-presentation of facts and especially changing the time-frame?

Transferring the figures to a future projection in place of today's reality is not only interesting, but prompts many thoughts about what could have gone into the IMF about-turn. Many behind-the-scene manoeuvres there is no doubt.

We appreciate the heat they came under and how that situation could have affected the ongoing negotiation. If therefore the posted debt-to-GDP ratio is about what 2015 holds for Ghana and not 2014, our stance that the subject has become jinxed represents an accurate image of the situation.

Perhaps they have been infected by their recent interaction with a lie-infected government suffering from chronic bad governance. We have learnt about how such institutions too must adhere to the niceties of diplomacy and should do everything to mitigate the pain suffered by a government which is under the pressure of financial mismanagement.

Ranjeev Gupta must have had sleepless nights thinking about how to make the government he is in negotiations with look good in a delicate face-saving manoeuvre.

We are worried about how this failed effort is going to cost the IMF in terms of image. When the negotiation suffers any setback, it is about the jinx which has afflicted the debt-to-GDP ratio.

Gupta would be fondly remembered by the government for doing something to mitigate the pain of being found to have lied about economic figures and especially not suffering a fine. Compromise at the IMF level under a jinxed situation is worthy of a national conversation.

 

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