Source: Amu Darko - List of Shameless Territories or Countries – LOST Countries or the HIPC BrigadeDuring my lunch break today, I decided to read about the IMF. As a matter of fact, I have never read on the IMF specifically before but since I am planning to convert my notes on Ghana and IMF into a small book, I felt it was about time to read from the horse’s own mouth. I stumbled upon HIPC on the IMF’s website and that threw my afternoon into fits, but hope recovered it, and so I share my trauma and hope with you.
Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative.
‘’The joint IMF-World Bank comprehensive approach to debt reduction is designed to ensure that no poor country faces debt burden it cannot manage. To date, debt reduction packages under the HIPC Initiative have been approved for 36 countries, 30 of them in Africa….’’
There are 2 issues here:
1. Poor countries
2. Unmanageable debt
So not all poor countries come under HIPC. Only those who create debt they cannot manage.
Now, the 10 Commandments of HIPC
i. IMF has 188 members, 36 are HIPC = 19% of members are poor with unsustainable debt.
ii. Out of 36 HIPCs, 30 are in Africa (actually only Sub-Saharan Africa SSA) = 83%
iii. SSA’s population is 13.5% of that of the world, but it has 83% of the poorest nations on earth.
iv. Out of the 30 HIPC in Africa, 13 are in West Africa (WA) = 43%
v. Out of the 36 HIPC globally, 13 are in West Africa = 36%
vi. Out of world population of 7.37b, 340m livre in West Africa = 4.6%
vii. WA’s population is 4.6% of that of the world, but it has 36% of the poorest nations on earth.
viii. SSA and WA are about 6 and 8 times respectively poorer relative to the world. Wow!!!!
ix. Of the 15 ECOWAS members, only Nigeria and Cape Verde are not HIPC. 13 are HIPC = 87%
x. From viii and ix, WA is the poorest and most mismanaged region in the world.
Why is W. Africa the poorest and the most mismanaged? Can we blame Colonialism or No Resources?
Colonialism – Ethiopia is on the list though never colonized. Ghana is on the list though it is the 1st to decolonize. Angola, Zimbabwe, Namibia and South Africa who were under colonialism much longer than Ghana and West Africa are not on the list. Not a single nation from Asia is on the list though most of them were also colonized. Safe to conclude, the list has little to do with colonialism.
Resources – Ghana produces 22% of world Cocoa (Ivory Coast 38%), 2nd largest producer of Gold in Africa, Obuasi the 3rd largest goldmine in the world and now over 100 000 barrels of oil/day. Yet we are on the list with I. Coast. What resources do Zimbabwe, Namibia, Lesotho, Swaziland have which exclude them? What about Burma, Cambodia, Vietnam, Thailand, Philippines? Why are they not on the list?
All these countries may be poor but that is not the issue. The issue is unsustainable debt. Debt means expenditure much bigger than income. We spend more than our pay. It is called FISCAL Indiscipline. Fiscal Policy is the sole responsibility of government. That is why I keep saying our problem is POLITICAL. Really, isn’t utterly disgraceful that when the poorest of the poor is mentioned, Ghana is in the number?
HIPC was launched in 1996 but it would appear that if it was around much earlier, Ghana would have qualified way back in 1965. We have been HIPC almost our entire life as a nation-state. The political traditions which have governed since independence have shown they do not understand the problem let alone be able to fix it. They have earned us a LOST country status. They must get lost now.
Revelation should lead to redemption, so it is all ok if we do not miss the moment of action. Nothing is automatic. Even faith without works is dead. The abiding truth is, whatever is lost can be found. The lost sheep may be found and the Prodigal son may come back. If Ghana is one of the Lost Countries, then Ghana may also be found. So I say, COME BACK GHANA. Do you believe that is possible? Then join ARM.
Tswa omanye aba
