Honorable Seth Terkper, Ghana’s Minister for Finance and Economic Planning has come under severe barrage for the flailing Ghanaian Economy and continuous devaluation of the Ghanaian Cedi.
The role of a finance or economy minister is a precarious one for every public servant who assumes that office, as the viability of the long and short term financial expectations of the nation is like the sword of Damocles looming daily over the head.
Many Ghanaians have lost hope in the Ghanaian Minister of Finance, but there are still a select few who believe that he is the man to turn the economy around as he possess a wealth of both theoretical and practical knowledge on finance and economics.
Prior to being appointed as Minister of Finance, Hon Seth Terkper was a Senior Economist in the Fiscal Affairs Department of the International Monetary Fund (IMF). He was also very influential in Ghana’s second attempt to implement the current Value Added Tax (VAT) system.
Despite his impressive pedigree, the Ghanaian minister has chalked very little success in his tenure in office.
His failure to achieve the success he observed in past roles may be a factor of both the long and short term effects of the 2009 global recession and the internal wrangling within the ruling government.
Those who support Hon Seth Terkper’s tenure as a Finance and Economic Planning Minister are of the opinion that there are certain elements within Ghana’s government, including the President’s Economic Advisory Team who are interfering with the minister’s overall vision. These elements are purported to have a divergent view of how the economy can be salvaged and are in an ideological conflict with the esteemed minister.
The President’s Economic Advisory Team is reported to be very disillusioned with the Hon Seth Terkper and have even ascribed the failure of Ghana’s ability to secure foreign loans and the downgrading of its credit ratings as a factors of the Ghana’s Finance Minister’s credibility.
At the end of last July, some of Ghana’s media outlets also reported that the President’s Economic Advisory Team have consistently expressed their strong dissent against any more tax increases proposed by the Minister of Finance.
The implementation of austerity measure including tax increase in a weakened economy is always an unpopular decision regardless of where it is implemented.
Globally, economists who are seeking stronger solutions to bolster their national economists are split into two fundamental ideological camps; the austerity camp that favors tax increase and the other camp that believes in lesser taxes and consumer advocacy.
France, which has had zero growth in its economy in the last six months is also having the strife between the dissenting government economy salvaging camps playing in the media.
The French Economy Minister Arnaud Montebourg has publicly condemned and attacked the French government’s policy of increasing taxes and implementing austerity measures in order to reduce the budget deficit.
Mr. Arnaud Montebourg who has an economic ideology similar to the Ghana’s President’s Economic Advisory Team believes that in order to boost domestic demand, consumers and local business must be given more task breaks.
On the other hand President Francois Hollande like Hon Seth Terkper believe that further austerity measures are needed despite the weakened economy.
Unfortunately the French Economic Minister who has been less than diplomatic in expressing his sentiments, will be exiting his position, while the Ghanaian Finance Minister who has been more circumspect will have some time to battle it out and see the possible implementation of his proposals.
4 Reasons Not To Give In To Social Pressure
There is something about pressure from loved ones, peers and people in our social circle that places such a heavy...