NDC can not take sole credit score for financial positive aspects, NPP did foundational paintings – Egyapa Mercer – Life Pulse Daily

Introduction

In a recent interview on PleasureNews’ Newsfile, former Sekondi-Takoradi Member of Parliament Andrew Egyapa Mercer offered a nuanced perspective on Ghana’s current economic performance. Mercer, a member of the New Patriotic Party (NPP), argued that while the National Democratic Congress (NDC) government deserves recognition for recent economic gains, it should not claim sole credit. He emphasized that the foundation for these gains was laid by the previous NPP administration under President Nana Akufo-Addo. This article examines Mercer’s remarks, the economic policies in question, and the broader implications for Ghana’s economic narrative.

Key Points

Background

Ghana’s Economic Context

Ghana has faced significant economic challenges in recent years, including high inflation, currency depreciation, and rising public debt. The COVID-19 pandemic exacerbated these issues, leading to a debt distress situation that required international assistance.

The NPP’s Economic Policies (2017–2025)

The NPP administration, under President Akufo-Addo, implemented several key policies aimed at stabilizing and growing the economy. These included infrastructure development, social interventions, and fiscal consolidation measures. However, the latter part of their term was marked by economic difficulties, culminating in the need for an IMF program.

The DDEP and Its Impact

The Domestic Debt Exchange Programme, launched in 2022, was a critical step in addressing Ghana’s debt sustainability. It involved restructuring domestic debt to reduce the government’s debt service burden. While necessary, it was politically unpopular due to its impact on domestic investors.

Analysis

Economic Policy as a Continuum

Mercer’s argument aligns with economic theory that emphasizes the long-term nature of policy impacts. Fiscal and monetary policies often take time to manifest results, and the benefits of reforms may only be visible after a change in administration.

The Role of the DDEP

The DDEP was a bold move that required significant political will. By restructuring domestic debt, the government reduced its immediate debt service obligations, freeing up resources for other priorities. This laid the groundwork for the fiscal space needed to implement growth-oriented policies under the new administration.

The IMF Program: Foundation and Execution

The IMF program approved in May 2023 provided a framework for economic stabilization and reform. Its successful implementation under the NDC government has been a key factor in restoring macroeconomic stability. However, the program’s design and initial implementation occurred under the NPP, highlighting the continuity of economic management.

Inflation and Growth Trends

Mercer’s reference to inflation dropping from 54% to 23% before the handover is a critical point. While the NDC has maintained this downward trend, the initial stabilization efforts began earlier. Similarly, the quarterly GDP growth rates in 2024 indicate that the economy was already on a recovery path.

Practical Advice

For Policymakers

Policymakers should focus on long-term economic planning rather than short-term political gains. Economic reforms often require sacrifices that may not yield immediate benefits but are essential for sustainable growth.

For the Public

Citizens should critically evaluate economic narratives and recognize that progress is often the result of cumulative efforts. Understanding the complexity of economic policy can lead to more informed public discourse.

For Media and Analysts

Media outlets and economic analysts should strive to provide balanced coverage that acknowledges the contributions of different administrations while holding current leaders accountable for their policies.

FAQ

Conclusion

Andrew Egyapa Mercer’s remarks serve as a timely reminder that economic progress is rarely the work of a single administration. While the NDC government has managed to stabilize and grow the economy, it built on the foundation laid by its predecessor. The DDEP, the IMF program, and initial efforts to control inflation were critical steps that set the stage for current gains. Moving forward, a more nuanced and factual narrative about economic policy will benefit Ghana’s long-term development. Recognizing the continuity of governance can foster better policy planning and a more informed public discourse.