Ghana’s Economic Struggles is Beyond the Finance Minister ‘s Control – UG Economist
In a recent television appearance, Dr. George Domfe, a distinguished Development Economist and Senior Research Fellow at the University of Ghana’s Centre for Social Policy Studies (CSPS), has offered a fresh perspective on the economic Struggles facing Ghana, suggesting that attributing the nation’s financial difficulties to Ken Ofori-Atta, the former Finance Minister, is misplaced.
Ghana’s Economic Struggles is Beyond the Finance Minister ‘s Control?
During his discussion on Atinka TV’s Agenda Show on February 15, 2024, Dr. Domfe argued that the economic turbulence experienced by Ghana cannot be laid at the feet of Ofori-Atta. He emphasized the impact of external factors on the country’s economy, pointing out that these were beyond the control of any single individual within the nation’s financial management team.
Highlighting the unforeseen global events that have influenced Ghana’s economy, Dr. Domfe referenced the significant increase in oil prices triggered by geopolitical tensions, notably the conflict initiated by Russia in Ukraine. This situation saw oil prices leap from $72 to $121 per barrel in 2022, a variable that Ghana’s finance minister had no power to control.
Dr. Domfe further illustrated how Ghana, unlike economies such as the United States which can show immediate responses to changes in their financial leadership, does not exhibit the same level of sensitivity due to its lesser integration into the global economy. Thus, he argued, the departure of Ken Ofori-Atta from his ministerial position would unlikely influence the nation’s economic trajectory.
The economist did not stop at geopolitical factors; he also brought attention to the devastating economic impacts of the COVID-19 pandemic.
The pandemic led to a dramatic increase in the prices of production factors due to the shutdown of factories worldwide, disrupting the global supply chain. This, in turn, resulted in inflationary pressures within Ghana as importers and manufacturers faced higher costs, compelling them to raise prices.
Dr. Domfe’s analysis provides a broader understanding of the complexities affecting Ghana’s economy. By highlighting the role of international oil prices, the global supply chain disruption due to the COVID-19 pandemic, and the inherent structure of Ghana’s financial system, he makes a compelling case against simplistically blaming the nation’s economic challenges on the actions or policies of a single individual.
As Ghana navigates through these economic challenges, the insights offered by Dr. Domfe underscore the importance of addressing both internal and external factors in crafting resilient economic policies.
It serves as a reminder of the multifaceted nature of economic governance and the need for a comprehensive approach to understanding and addressing economic woes.
From news to politics, travel to sport, and culture to Entertainment news – GhanaEducation.org has a host of articles to suit your interests. To find the stories you want to read, and more, click here