Kufuor explains why his government opted for HIPC despite concerns over Ghana’s image

Former President John Agyekum Kufuor has defended his administration’s decision to place Ghana under the Heavily Indebted Poor Countries (HIPC) initiative, saying the country’s severe financial difficulties required practical action rather than a desire to protect its image.

In an interview with Joy News’ Evans Mensah, Mr Kufuor said his government chose to confront the country’s economic realities after assuming office in 2001, despite concerns that the decision would portray Ghana as financially weak.

He acknowledged that the move generated disagreement, including among members of his own administration, because some considered it humiliating for the country to admit its economic difficulties before the international community.

“It wasn’t unanimous because even within my own government, the whole idea was admitting to your utter poverty to the whole world,” he said.

Mr Kufuor recalled that Ghana was struggling under a heavy debt burden and had difficulty securing credit to meet essential national needs.

“Nothing seemed to work for us. No creditor would give anything to us. Even our own brothers of Nigeria wouldn’t continue to supply us the crude oil to refine,” he recalled.

He said he believed the government had to acknowledge the true state of the economy before it could develop a path towards recovery.

“The thing that I thought would make the relations workable was to tell the factual truth of the state of affairs as we found it,” he said.

According to the former President, the HIPC initiative presented an opportunity for Ghana to address its debt challenges and mobilise resources for national development.

His administration intended to use the relief and support associated with the programme to attract investment and fund priority sectors, including education, healthcare and infrastructure, while creating employment opportunities for young people.

Mr Kufuor maintained that protecting national pride should not take precedence over decisions aimed at improving the living conditions of citizens.

“I decided that I would rather bite the bullet, no matter what people would say. I wouldn’t stand on empty pride,” he said.

He added: “Proud and poor, I said that wasn’t a policy to follow.”

“You swallow your pride and go pragmatic and change things to better the lot of your nation,” he said, explaining the rationale behind his government’s decision.