The Dean of the University of Cape Coast Business School (UCCBS), Professor John Gatsi, has criticized the Finance Minister, Ken Ofori-Atta, saying that he lacks an understanding of the economy he manages.
This statement was made in response to the Finance Minister’s comment that the decline of inflation figures is an indication that Ghana’s economy is bouncing back.
Professor Gatsi explained that the root causes of the economic hardship in the country have not been addressed.
The Dean pointed out that the Finance Minister needs to consider the broader context of the IMF program, which he initially rejected but later accepted.
He also needs to show that the program is working. Professor Gatsi further explained that the Finance Minister is comparing current economic indicators to those of ten or fifteen years ago, which is not an accurate comparison.
The Dean argued that the decline in inflation figures is not indicative of a significant improvement in the economy. Neither is it responsive to policy rates or the cost of doing business in the country.
The exchange rate is still high, and the inflation rate is not bringing down the policy rate. The fundamental problems of corruption, unemployment, and the selling of jobs at government departments remain unchanged. The high cost of doing business also persists.
In conclusion, Professor Gatsi expressed his surprise that the Finance Minister could look only at the inflation figures and claim that the economy has turned a corner.
He believes that this shows a lack of appreciation for the economy he is managing.
SOURCE: Starfmonline
