The Steps Ghana needs to take in order to stop depending on the IMF for funds

In recent years, Ghana has been heavily dependent on the International Monetary Fund (IMF) for financial assistance. This dependence has led to a number of negative consequences, including economic instability and a lack of control over economic policy. In order to stop relying on the IMF for funds, Ghana must take a number of steps to improve its economic situation and increase its ability to generate income.

Step 1: Increase Internal Revenue Generation

The first step Ghana must take in order to stop depending on the IMF for funds is to increase its internal revenue generation. This can be achieved through a number of measures, including improving its tax collection system (from individual, corporate, social insurance, goods and services, and property taxes) and increasing the number of businesses operating in the country.

By increasing internal revenue generation, Ghana will be able to fund its own development projects without having to necessarily/entirely depend on the IMF for assistance.

In addition, there must be proper management of these generated fiscal resources and effective systems must be put in place to check the flow and use of the generated revenue.

Strict laws must be established to sanction officials who embezzle such funds. Hence, accountability and transparency must be evident in all financial processes and procedures.

Integrity plays a vital role in managing national resources. Especially fiscal assets.

Step 2: Improve Economic Stability

Ghana needs to improve its economic stability. This can be achieved by reducing inflation, stabilizing exchange rates, and improving the balance of payments. In reducing inflation, this aspect should also focus on the welfare of citizens.

When the living conditions are favorable, even to the less privileged in society, people (citizens) are able to become their best. Their life goals shift from "striving to feed on a daily basis and overcome poverty" to "how best they can improve their communities and their country" which in turn, establishes collective reasoning and community engagement for sustainable development and national growth.

This is evident in Abraham Maslow's Theory of Needs. If sustainable food and water is the primary goal of a citizen, how do you expect them to care for or contribute to your development policies? How do you expect them not to dodge the insane taxes and debts? It's pretty simple. Create an environment they can survive in, and train them to live in it. If government "cannot feed" its citizens on a daily basis, create a system that will sustain them.

This is where we can incorporate some vital ancient systems Such as "Operation Feed Yourself" etc.

As a result of improving economic stability, Ghana will not only be able to take care of its citizens but also attract more investment and increase its ability to generate income and escape debt.

Step 3: Increase Foreign Investment

It is vital for Ghana to increase foreign investments. This can be achieved through improving the investment climate, increasing access to finance, and providing incentives for foreign investors.

In addition to this, other national factors come to play. These factors advise investors whether or not to invest in a country. they include political, economic, and legal stability, quality of infrastructure (roads, water, and electricity especially), trade zone boundaries (free, restricted, open or closed), difficult and tiresome administrative processes/procedures (which may be unnecessary) and small market size among others. Some of these factors may be controlled or improved whereas others cannot be influenced.

However, they are worth considering when it comes to improving FDIs (Foreign Direct Investments).

Step 4: Reduce Public Debt

Ghana must reduce its public debt. This can be achieved by cutting government spending, reducing subsidies, and privatizing state-owned enterprises among others.

Asides the above-mentioned, revisiting, improving and altering certain practices, systems, and policies such as increasing the retirement age (if favorable after all considerations) and discarding obsolete and ineffective systems and strategies that drain financial resources in the background are worth considering. Unfortunately, these avenues may have also served as opportunities of exploitation by selfish officials (in charge of those obsolete systems and policies) who embezzle funds that have been allocated (on recurring basis) for the facilitation of such policies and systems.

These will help Ghana to effectively manage the flow and use of its financial assets, as well as promote sustainable restructuring of systems and policies.

NB- National financial auditing expertise will be vital in the need to review or transform such policies and systems.

By reducing public debt, Ghana will be able to improve its credit rating and attract more investment.

Step 5: Improve Infrastructure

Ghana must improve its infrastructure by increasing investment in roads, ports, and airports, and providing access to electricity and clean water at all locations, especially in rural areas (which can attract great investment).

Improving infrastructure also creates an enabling environment for citizens to thrive and develop. Asides available natural resources, what gives a country its status and recognition, is the status and welfare of its citizens.

A developing country will keep running in circles trying to attain the recognition of "developed". But one key factor that speeds up the processes is truly considering the welfare of the people; including providing all the necessary infrastructure that will help them develop as individuals (in their varied skills) to contribute back to society.

By improving infrastructure, Ghana will be able to attract more investment and generate more income.

In conclusion, Ghana can stop depending on the IMF for funds by increasing revenue generation, improving economic stability, increasing foreign investment, reducing public debt, and improving infrastructure. By implementing these steps, Ghana will be able to generate more income, improve its economic situation, and reduce its dependence on the IMF.

All the above-mentioned points are well-known solutions that government is aware of. However, what are we doing to change the narrative?

"Bureaucracy is vital. But too much red-tapeism can make a country stagnant. Going in cycles, means only one thing. Circles."

Indeed, "We can end indebtedness if we really want to"

Written by Precious Nwachukwu.