Ghanaian politician and Member of Parliament for Bolgatanga central, Mr Isaac Adongo has deceased heavily on the vice president Of Ghana, Dr, Muhammadu Bawumia for being ignorant about the currently economy and hardship in the country
The comes after Dr Bawumia revealed in a viral video that even tho the public debt id rising, The NPP or Akufo Addo Government is trying hard to stabilize the local currency and that the economy now is picking up which has improve the standard of living of Ghanaians.
In a post sighed Pinax News, he wrote:
Stop The Naivity and Classical Economic Theories. You have obviously mismanaged Ghana into A Debt Trap, High Fiscal Risks, external Vulnerabilities and Extreme Hardships.I have watched a video of Dr Mahmoud Bawumia at a TESCON Program at UCC trying so hard in an absurd manner to justify the mess he has run Ghana’s Economy into, in a similar fashion to his ill-fated attempt to run away from his technically deficient analysis of exchange rates developments and the fundamentals of the economy. Is it not this same man who once said ‘If you are in doubt, look to the exchange rate’? And that, ‘if the fundamentals of your economy are weak, the exchange rate will expose you’?We can all now see how the exchange rate has badly exposed Dr. Mahmoud Bawumia. Under Dr. Bawumia, the exchange rate was all over the place before it was rescued by Covid-19, with the dollar even breaking jail and Bawumia PhD made an unsuccessful u-turn with his warped logic concept.In the video gone viral, Dr Bawumia is heard admitting that the public debt is high though at high risk of debt distress but he then sought to imply that if you borrow unsustainably as they have done, it is prudent debt management and that leads to;1. Low inflation. 2. Low interest rates 3. Stable currency.4. Economic growth 5. Improvements in standard of living of Ghanaians. Dr. Bawumia is so naive. Will he use inflation and exchange rate to pay for the debt?I am at pains to see how unsustainable debt levels that pose high risks of default could achieve any of those variables he listed above .Real practice over the last couple of years, has exposed Dr Bawumia’s lack of appreciation and technical deficiency in risk-based public debt management. Hence his consistent recourse to rate of debt accumulation and debt to GDP, even though important, are intermediate variables to measure the performance of risk-based debt management. Dr Bawumia is cunningly misleading people to engage in a less important variable of debt sustainability and risks of debt dynamics to the neglect of major drivers of quality of public debt and their impact on debt sustainability, fiscal risks and external vulnerabilities.
