Who Is A Better Manager Of The Ghanaian Economy, NDC or NPP? The Answer Is Here.

Beyond the noise, politics and propaganda, there will always be the facts and figures. There will always be the truth which will manifest under the realities of time. 

The battle for the soul of the Nation of Ghana by the two major political parties, New Patriotic Party (NPP) and the National Democratic Congress (NDC), has always been about who among these two can best manage the economy of the country. 

Who will best use the resources of the state for the betterment of its citizens?

The answer seems difficult when one tends to listen to all the arguments from both sides. Sometimes, even the experts tend to confuse the matter with their skewed analysis. 

However, when we disengage from these politically tainted analysis and avert ourselves to the core facts from the raw data, the answer comes in handy. 

To make a determination of who is a good manager of a purse, even at our various homes, a simple parameter like debt management, which is a function of revenue and expenditure can be used to arrive at a safe conclusion. 

Per the above, we shall use the debt sustainability prowess of these two parties to judge; What the economists call “the debt to GDP ratio”.

The debt-to-GDP ratio is the metric comparing a country’s public debt to its gross domestic product (GDP). By comparing what a country owes with what it produces, the debt-to-GDP ratio reliably indicates that particular country’s ability to pay back its debts. Often expressed as a percentage, this ratio can also be interpreted as the number of years needed to pay back debt if GDP is dedicated entirely to debt repayment.

Regarding percentages, the World Bank states that, once a country crossed a ratio of 60% of debt to GDP, that country is declared Highly Indebted Poor Country (HIPC). 

 In fact, the current Vice President, Dr. Mahamudu Bawumia affirms this fact in 2015, when Ghana’s debt to GDP ratio was 67% under John Dramani Mahama. 

Presently, under his watch as the head of the economic management team, Dr. Bawumia is supervising a debt to GDP ratio of 83%. This is way above the 67% he chastised JM for. 

The reasons for this, whether justified or not, is inconsequential. Once this threshold is crossed, the country is HIPC. Fact. 

Now who is a better manager? Your answer is as good as mine.

Content created and supplied by: Rasgambo1 (via Opera
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