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IMF Thoughts
on Ghana,
"Crowding in
of Private Sector,"
Unions
By
Matthew
Russell Lee
UNITED
NATIONS, May
13 -- While Ukraine
and Greece
were the
subjects of
the first six
questions
taken at the
International
Monetary
Fund's May 8
embargoed
briefing, the
IMF impacts
countries all
over the
world.
On May 8 and
now today,
we cover Ghana.
On
Ghana, Inner
City Press
asked: the
Secretary-General
of the Trades
Union Congress
Kofi Asamoah
spoke out on
May Day
against the
government
seeking an IMF
program. What
does the IMF
make of it,
and would the
IMF consult
with such
opponents if a
program were
requested?
On May 8, spokesperson
Gerry Rice
answered:
I
have a couple
of questions.
And I'll take
some of them
and get back
on other ones
off-line. On
Ghana, the
Secretary
General of the
Trade
Union Congress
spoke out on
May Day
against the
government
seeking an
IMF program.
What does the
IMF make of it
and would the
IMF consult
with such
opponents if a
program were
requested?
Just
to remind, the
Ghanaian
authorities
have not
requested a
new program
from the IMF.
The Board, our
Board
discussed the
Article IV
review on
Ghana on May
the 5th, and
we will have a
press release
on that in due
course.
Let
me just add,
as usual, the
IMF consults
with a wide
range of
stakeholders,
and in
particular the
Ghana team has
had meetings
with
the Trade
Union during
its visits to
Accra to
exchange views
on the
country's
outlook and
challenges.
Now
the
press release
is out,
stating among
other things
that
In
light of
current
imbalances,
Directors
recommended a
more ambitious
medium-term
consolidation
path to
stabilize
public debt
and debt
service at
sustainable
levels. While
the risk of
debt distress
remains
moderate,
Directors
expressed
concerns about
the high debt
service-to-revenue
ratio. A
stronger
medium-term
adjustment
could set
off a virtuous
cycle of lower
fiscal
deficits and
falling
interest
rates,
creating space
for social and
infrastructure
spending and
crowding-in of
private sector
activity.
We'll
have more on
this "virtuous
cycle" and
"crowing in of
private sector
activity." On
May 8, Inner
City Press
also asked:
In
Pakistan, PTI
Information
Secretary KPK
and MNA Ayesha
Gulalai has
said, “it is
very
unfortunate
that
Pakistan's
budget is
being prepared
by the IMF in
Dubai..
instead of
taxing the 4
million
wealthy
identified by
the FBR,
burden is
being passed
on to the
already
burdened
masses.” What
is the IMF's
response?
On
Madagascar,
when George
Tsibouris on
May 6 said the
government
agreed to
"address the
issue of fuel
price
subsidies over
time," can you
be more
specific on
how much time
the IMF
envisions?
Also, can the
IMF be more
specific about
what is
referred to by
"creating a
level playing
field for the
private
sector"?
While
the Managing
Director is in
Morocco, can
you answer if
Western Sahara
is included by
the IMF in
Morocco's
data, and what
impact the IMF
believes the
Western Sahara
issue has on
Morocco's
economy and
economic
prospects?
This
last one,
Inner City
Press
also asked two
weeks ago,
and again more
recently on
connection
with the IMF's
Ukraine
program. It
was not
answered,
during or
since Managing
Director Lagarde's
trip to
Morocco. Watch
this site.
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