[ 2011-04-13 ]

Ghana must not prioritise high growth rate - IMF Deputy MD
A first Deputy Managing Director of the
International Monetary Fund, John Lipksy, has been
explaining the fund’s claim that high growth
targets may not be in the best interest of
developing countries.

The fund in its World Economic Outlook report for
2011 is cautioning developing countries against
“overheating” as they target high growth
rates.

It warns that this may cause developing countries
to suffer the same fate as the developed ones that
were struck during the recent world economic
crises.

Mr. Lipsky explained to Joy Business’ Kojo
Oppong-Nkrumah that while Ghana and other
developing countries require consistently high
growth rates they must first focus on getting the
fundamentals of stability right.

“If an economy is relatively inefficient,
attempting to grow at 10 per cent a year is
impossible and if policies are geared at that kind
of growth, if you end up producing run-up in
inflation, huge budget deficits, huge external
deficits, balance payment deficits, you are
guaranteed to induce the kind of distortions that
result in” serious long-term economic problems,
Mr Lipksy told Joy Business’ Kojo Oppong-Nkrumah
who is in Washington participating in the Spring
Meetings of the World Bank and IMF.

Source - MyjoyOnline

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