PCI Policy Offers Hope, But Ghana’s Economic Discipline Will Be Tested — Economist Warns
By Maurice Otoo
Economist Dr. Emmanuel Darkwa says Ghana’s proposed Policy Coordination Instrument (PCI) with the International Monetary Fund could offer a fresh opportunity for economic stability, but cautioned that the country’s long-standing structural weaknesses remain unresolved.
Speaking on the PCI policy and the Finance Minister’s economic direction on Kessben TV’s Digest show, Dr. Darkwa noted that the IMF’s role under the PCI arrangement would focus mainly on surveillance, technical guidance, and policy support rather than direct financial assistance.
According to him, Ghana’s history with the IMF should serve as a lesson for policymakers.
“Ghana has gone to the IMF about 17 times, and after every exit, the major question has always been whether government can sustain the gains made under the programme,” he stated.
He explained that despite successive IMF interventions, underlying challenges such as corruption, procurement breaches, economic mismanagement, and weak fiscal discipline continue to undermine Ghana’s economic progress.
Dr. Darkwa stressed that while external shocks may affect economies globally, Ghana’s ability to withstand such pressures would depend largely on the resilience and discipline of its own economic structures.
“The resilience of our economy will determine our fate,” he emphasized.
The economist further explained that the PCI arrangement is expected to run for three years, subject to periodic reviews to determine Ghana’s next economic direction.
He noted that although Ghana could still return to the IMF, any subsequent engagement would not necessarily involve direct financial support.
“We can go for another programme, but not necessarily a funded programme,” he explained.
Dr. Darkwa added that the next two years would be critical in determining whether the government can effectively sustain the policies and programs tied to the PCI framework.
He, however, maintained that the government’s broader economic agenda appears to be driven by its own long-term objectives rather than by the PCI arrangement itself.
