Question

A. Describe in detail any IMF programme that has been implemented by the government of Ghana in the last five years.
B. Describe any 2 criticisms leveled against the programme you have described.

Answer 1

Imf programme in 2015:

a three years program with 918 million dollar of us . This financial support was given as to crate economic sustainability in the ghana by increasing growth rate and creation of job . This can be done through investment through debt and increase production activities .

This programme adopted by ghans government as countries financial sector was not viable enough to fulfill investment need as it's interest rate are higher, not secured and risky loan . , monetary policy and domestic financial policy slippage was there.

So they approach imf to fullfill balance of payment crisis by imf loan.

Criticism:

. 1) this programme was supported by imf on some conditions , which was against economic freedom of country as they setup limit on foreign debt and investment .

2) these loan from imf increase their debt burden as well as foscal deficit also increase ,which led to lower sovereign credit rating. Because the fiscal policy target under this programme set up by imf was too ambitious and was not as per country's structural weakness and thus further harmful for fiscal consolidation of country.