We are not pursuing neo-liberal economic policies -Finance Ministry replies TUC

The Finance Ministry has rejected claims by the Trade Union Congress that government was relying on advice from experts at the International Monetary Fund and the World Bank, thereby, leading to the implementation of neo-liberal economic policies in the country.

According to the Ministry, government economic policies are informed by contributions from various stakeholders including TUC, domestic policy think-tanks, Civil Society Organisations (CSOs), Development Partners and international investment and financial institutions.

“The country has since 2012 not been on an IMF programme and for that matter all economic policies currently being implemented have been home grown,” a statement issued by the Public Relations Department of the Ministry said.

The statement is in response to a press statement issued by the TUC titled, “The General Economic Situation in Ghana.”

According to the TUC, in the last three decades, Ghana’s economic policy have been heavily neo-liberal in character because government has ignored its advice and that of civil society organisations and have instead chosen to rely on the economic policy advice of ‘experts’ at the International Monetary Fund (IMF) and the World Bank.

It said, “These bad economic policy choices have been exacerbated by pervasive corruption, cronyism, incompetence, and extreme partisanship.”

However, the Finance Ministry pointed out that government was not pursuing blanket neo-liberal economic policies, but operating a more efficient economic system without excessive government intervention as happened in the past.

It said the frequent adjustments in utilities and fuel prices were to correct the inefficiencies in the untargeted nature of the subsidies, where the subsidies tended to benefit the rich more.

It further noted that government has consistently engaged the TUC and other stakeholders in designing policies and measures for the effective management of the economy, adding that, “in as much as not all submissions from all stakeholders can be taken on board, the budget and the Medium Term Policy Framework benefit significantly from these inputs.”

The Ministry of Finance therefore, emphasised that the TUC would remain an important stakeholder in the management of the economy.

Read the full statement by the Ministry of Finance