Ghana’s economy problems: ‘Bawumia plays the blame game’ – Steve Hanke

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A Professor of Applied Economics at the Johns Hopkins University, Steve H. Hanke, has accused the Vice President of Ghana, Dr Mahamudu Bawumia of playing the blame game when it comes to the source of the problems facing the Ghanaian economy.

His comment comes after the Vice President who is also head of the Economic Management team (EMT) blamed the impact of the Covid-19 for the challenges the economy is going through.

“We had to undertake a major banking crisis reform. At that time, 2018/2019, it cost almost $7 billion in order to save the banking system. Now the choice that was available was that either you let the banking system collapse or you save there was really no middle way.

“So we had to save the banking system and the deposits of 4.6 million people [were safe],” he said.

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“We had the worst economic depression since the 1930s in the global economy. Of course from the President’s point of view at the time of Covid-19, the emphasis was on saving lives and not on fiscal discipline.

“So yes, we focused on saving lives at great fiscal cost,” Dr Bawumia said.

But in a tweet reacting to this, Prof Steve Hanke said “When it comes to the source of Ghana’s economic problems, VP Bawumia plays the BLAME GAME.

“You know, it wasn’t me, it was the guy behind the tree. Today, I measure GHA’s inflation at 80%/yr. Without a currency board, Ghana is going down the tubes..”

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