Kwaku Kwarteng Describes Ghana's Economy As A Ponzi Scheme: "We Must Change To Break The Eight"
- Parliament's Economy Committee Chair Kwaku Kwarteng says Ghana's economy has been managed like Ponzi scheme
- He said the vicious cycle of spending beyond budgets and borrowing to finance further overspending is what has resulted in the economic crisis
- He urged the political class to reform and demonstrate their resolve by sacrificing with Ghanaians and fixing the country
The Chairman of Parliament’s Economy Committee, Kwaku Kwarteng, has likened Ghana’s economic management to a Ponzi scheme.
In an opinion piece titled, “To break the eight, we must break the norm,” he blamed the prevailing economic hardships on decades of bad politics and economic mismanagement.
Source: UGC
He said that while the country's current situation is due to both external and internal factors, the government cannot ignore the internal factors in its attempt to solve the crisis.
He added that the internal cause of Ghana’s hardship is the tendency of successive governments to overspend on their budgets and borrow money from international lenders to finance further overspending.
“And many of these expenditures are just bad prioritisation,” he said.
According to Kwaku Kwarteng, the vicious cycle of overspending, borrowing to cover debts, and overspending is akin to a Ponzi scheme.
He noted that lenders have refused to lend, which has led to the current economic crisis.
He warned that if the country continues on this path, it risks the collapse of its democracy.
He has advised the political class to acknowledge this reality and change their behaviour before time runs out.
Kwarteng’s suggestion to political class
Kwaku Kwarteng advised the political class to adopt deep and far-reaching reforms to address the decades of bad politics and economic mismanagement by ruthlessly fixing the country and staying the course no matter the challenges.
He further urged the political class to lead by example and demonstrate sacrifice to convince Ghanaians that “we are in this together”.
He also advised that the corrupt public procurement regime must be overhauled, and politicians must lead with integrity and humility.
He said that if the government can demonstrate this faithfulness to Ghanaians, breaking the eight will be easy.
Economist agrees with Kwarteng's assertion
Economist Kwadwo Antwi-Wiafe, in an interview with YEN.com.gh agreed with the Economy Chairman's assertions.
He equally blamed the political class for their failure to propose robust policies for the country, opting instead for populist sloganeering and incessant borrowing to keep up with their promises at the expense of morals and ethics.
"Ghanaians, in fact, are not poor if you may permit me to say that. Because there’s nothing like credit or whatever, it’s pay as you go. And at least a handful of Ghanaians can afford food. The sad thing however is we are not focused well enough. The individualism is too much," he said.
Kwarteng removed from Finance Committee
Earlier, the Obuasi West Member of Parliament, Kwaku Kwarteng, was removed from chairing parliament’s Finance Committee to lead the newly created Economy Committee.
The majority leader, Alexander Afenyo-Markin, announced the shake-up on the floor of parliament on Friday, June 28, 2024.
The new standing orders created the Economy Committee as a standalone committee from the Finance Committee, but it has very few powers compared to its predecessor.
The sudden announcement took some majority MPs aback.
Afenyo-Markin, also the Effutu MP, noted that other changes would be announced in subsequent days.
Kwarteng wins NPP primaries
YEN.com.gh reported that the Obuasi West MP Kwaku Kwarteng has won the New Patriotic Party (NPP) primary in his constituency.
He beat two contenders, including a former presiding member of the Obuasi Municipal Assembly, Lawrence Nana Obeng Bondah.
Bondah polled 245 votes, while the other candidate, Faustina Oppong, got eight votes in the election.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
PAY ATTENTION: Stay informed and follow us on Google News!
Source: YEN.com.gh
