Accra: The Integrated Social Development Centre (ISODEC) has expressed strong opposition to the newly formed Policy Coordination Instrument (PCI) agreement between the Government of Ghana and the International Monetary Fund (IMF). ISODEC argues that this arrangement will not be beneficial for the nation.
According to Ghana Web, ISODEC criticized the government's decision to engage in another IMF-backed program shortly after finalizing a $3 billion Extended Credit Facility (ECF). The policy and advocacy organization contends that this move signifies a continued reliance on external economic control, rather than pursuing genuine economic independence for Ghana.
A statement issued in Accra and shared with The Ghanaian Times highlighted ISODEC's concerns that the PCI, while labeled as a non-financing arrangement, still enforces stringent policy conditions similar to those tied to IMF loan programs. The organization explained that the IMF would evaluate Ghana's economic policies every six months, a process they believe could undermine the nation's economic sovereignty and subject its borrowing credibility to external oversight.
ISODEC emphasized that the PCI is essentially a form of structural adjustment, lacking financial support yet imposing conditionality, which they view as problematic. They noted that the government's rationale for the PCI-to boost investor confidence and facilitate more international borrowing-reflects a 'dangerous dependence on external debt.'
The organization argued that Ghana's economic issues could not be solved through persistent IMF oversight, but rather by bolstering domestic fiscal capacity and enacting policies suited to the country's development needs. ISODEC criticized the IMF's focus on expenditure cuts, subsidy removals, and strict deficit targets, citing their contribution to hardships for Ghanaians, including pressure on public services and job opportunities.
ISODEC advocated for Ghana to prioritize policies that enhance domestic production, lessen import dependency, and create sustainable employment, as a sovereign issuer of its own currency. The organization also raised alarm over illicit financial flows (IFFs), which they claim continue to deprive the country of essential revenue, estimating a loss of about $32.6 billion between 2013 and 2023 due to trade misinvoicing, tax abuse, and related activities.
The organization urged the government to intensify efforts against illicit financial flows by strengthening customs enforcement, improving tax administration, and renegotiating extractive sector agreements. ISODEC suggested adopting a Functional Finance framework for national budgeting, implementing a national Job Guarantee Programme, and exploring alternative African financing options like the Pan-African Payment and Settlement System (PAPSS), the African Export-Import Bank, and other South-South financing partnerships.
Additionally, ISODEC called on Parliament to thoroughly review the long-term impacts of IMF conditionalities on Ghana's economic growth, fiscal autonomy, and public service delivery before approving any new arrangements. The organization concluded by stressing that Ghana's future relies on constructing a self-sufficient economy founded on domestic resource mobilization, productive investment, and national sovereignty, rather than ongoing dependence on IMF supervision.