This cycle of borrowing and debt repayment mirrors the workings of a Ponzi scheme – George Ayisi
George Ayisi, the Director of Communications at the National Disaster Management Organization and a spokesperson for the New Patriotic Party (NPP), has shared his candid view on the pressing economic issues highlighted in Hon Kwaku Agyeman Kwarteng’s article.
“To Break the 8, We Must First Break the Norm.” George’s response underscores the need for all politicians to recognize and address the systemic economic challenges facing Ghana.
According to Mr.George, Hon Kwaku AgyemanKwarteng’s analogy of running the economy like a Ponzi scheme is a stark reminder of the unsustainable financial practices that have plagued Ghana for decades.
“We go for loans, use them for their intended purpose, and then overspend beyond our means,” George explains.
“Every time, we have to look for new loans to pay off old debts and cover current expenditures. This cycle of borrowing and debt repayment mirrors the workings of a Ponzi scheme, where loans are taken with the promise of higher returns, leading to perpetual borrowing.”
The recent cut-off from the capital market has worsened Ghana’s financial distress by making access to credit extremely difficult. George emphasizes the urgent need to implement measures that ensure the country spends within its means.
“We should start putting things in place that would help us spend within our means,” he stresses. “This includes adhering to a strict budget to stop the cycle of taking new loans.”
Additionally, George highlights the issue of procurement processes, which contribute to economic inefficiencies and corruption. He calls for a comprehensive overhaul of these processes to ensure transparency and accountability.
“The lack of clarity in procurement is affecting us significantly,” he notes. “Reforming this system is crucial for our economic stability.”
While Hon.Kwarteng’s article was initially intended for the NPP, its message resonates broadly and addresses systemic issues that have existed since the 1960s.
George clarifies that the NPP is not solely responsible for the current economic problems but acknowledges that the party, along with others, must take responsibility for implementing meaningful reforms.
In summary, George’s response to Kwarteng’s article is a call to action for all politicians to recognize the urgency of sustainable spending and transparent procurement. By addressing these fundamental issues, Ghana can pave the way for a more stable and prosperous future.
WATCH VIDEO BELOW:
Story by: Pepertual Anyimadu
