ISSER Director Advocates Strategic Investment of IMF Funds in Productive Sectors, Warning Against Excessive Consumption

Professor Peter Quartey, the Director of the Institute of Statistical Social and Economic Research (ISSER), underscores the necessity of directing funds acquired from the International Monetary Fund (IMF) towards strategic investments in productive sectors. In an interview on JoyNews’ PM Express, Prof Quartey emphasizes that IMF funds should not be perceived as “free money,” urging a deliberate focus on investments that foster economic growth and create sustainable income streams.

Prof Quartey cautions against allocating resources to consumptive purposes, as such a strategy could jeopardize the nation’s ability to meet future repayment obligations. He advocates prioritizing infrastructure development, particularly highlighting the importance of investing in well-maintained roads that facilitate efficient transportation of goods from production areas to consumption centers and export ports.

The ISSER Director argues that such investments in infrastructure would not only reduce travel time but also enhance productivity, especially in key production areas like Kumasi. Prof Quartey suggests diversifying the use of funds into areas such as agricultural support, credit, and agricultural insurance. He also underscores the significance of adding value to production and supporting initiatives like “Planting for Food and Jobs 2.0.”

However, he underscores the critical importance of judiciously allocating these funds to individuals and sectors that positively contribute to the country’s Gross Domestic Product (GDP). Prof Quartey emphasizes, “Some of the funds can go into that, but we should make sure that they go into the right areas and are dispersed to the right kind of people who will produce and add to our GDP. And also add value to whatever we produce.”