Unveiling the Economic Missteps of the NPP Government in Ghana (2016-2024): A Call for Change by NDC UK/IRELAND CHAPTER

With Ghana on the brink of another crucial election, it’s pivotal to scrutinise the economic trajectory under the New Patriotic Party (NPP) government from 2016 to 2024. Despite promises of prosperity and fiscal prudence, the NPP’s tenure has been marred by significant setbacks and policy failures, leading to adverse consequences for the country’s economy and people.

Fiscal Mismanagement:

Fiscal mismanagement has been central to the economic woes under the NPP’s governance. Despite pledges to rein in spending and reduce debt, the government has struggled to maintain fiscal discipline, leading to widening budget deficits and escalating public debt levels to GHS 621 billion, representing a 509 per cent increase from 2016. Excessive borrowing without commensurate investment in productive sectors has burdened future generations with a heavy debt load, constraining economic growth and jeopardising long-term fiscal sustainability.

Electricity Challenges (Dumsor):

One of the NPP government’s most glaring failures recently has been its inability to effectively address the persistent electricity challenges, commonly known as “Dumsor.” Despite assurances of finding lasting solutions to the current erratic power supply, the NPP’s efforts have fallen short. Inadequate investment, government failure to service its debt obligation with the stakeholders in the industry and policy inconsistencies have exacerbated the problem, disrupting businesses, households, and essential services, hindering economic productivity and eroding investor confidence.

Inflation and Poverty:

Moreover, the NPP government’s mismanagement extended to monetary policy, particularly in handling money printing by the Bank of Ghana. The reckless printing of money without corresponding increases in productivity led to rampant inflation, eroding the purchasing power of the Ghanaian currency and pushing over 800 thousand Ghanaians into poverty. The governor of the Bank of Ghana, Dr Ernest Addison printed a whopping GHS 45 billion in 2022 alone. This self-inflicted inflationary spiral further exacerbated ordinary citizens’ economic challenges, intensifying income inequality and widening the gap between the rich and the poor.

Currency Depreciation and Inflation:

The weakening of the Ghanaian cedi under the NPP government has further compounded economic woes. The adverse effects of currency depreciation have disproportionately affected vulnerable segments of society, worsening income inequality, and social hardships.

Job Creation and Economic Growth:

Despite claims of job creation and robust economic growth, reality tells a different story. Unemployment remains stubbornly high at 22%, especially among the youth, which is currently 44%, fuelling social unrest and aggravating poverty. Economic growth has been uneven, with specific sectors stagnating due to unfavourable policy environments and regulatory hurdles, stifling innovation and entrepreneurship.

Corruption and Governance:

The NPP government’s record on corruption and governance has also been tarnished by misconduct and nepotism. Despite pledges to root out corruption and improve transparency, instances of graft within government ranks have undermined public trust and confidence in the government’s ability to deliver on its promises.

Weak institutional frameworks and political interference in state institutions have further eroded accountability and governance standards, perpetuating a cycle of impunity and disenchantment among citizens.

Conclusion:

As Ghana stands at a critical juncture, voters must critically evaluate the economic performance of the NPP government over the past eight years. From fiscal mismanagement to inflationary pressures and governance failures, there are compelling reasons why Ghanaians should seek change in the upcoming election.

By demanding accountability, transparency, and sound economic stewardship, Ghanaians can chart a path toward a more prosperous and equitable future by electing John Dramani Mahama and the NDC. As the country stands at a critical juncture, the people of Ghana must reflect on the impact of the incumbent government’s policies and actions on their lives and livelihoods. By holding this NPP administration accountable and demanding change at the ballot box, Ghanaians can pave the way for a more equitable, transparent, and prosperous future for all with the power of their thumb on 7th December 2024 by voting for the NDC.

Source: NDC UK/Ireland Chapter Communication Bureau