I have seen a write up by an NDC to disprove the claim by JOY FM that Ghana has acquired a HIPIC status again after we rose from it into a middle income status under kuffour
Their reason to disprove lies on the fact that, there are some countries with higher DEBT to GDP ratio than that of Ghana’s now, yet these countries aren’t considered as HIPIC so why should JOY FM label Ghana’s status as HIPIC?
What the NDC failed to realise and analysis with was that, Ghana was forced for a HIPIC, after NPP took over from NDC because of how shattered NDC has made Ghana’s economy.
Lets all remember that, Ghana’s DEBT TO GDP RATIO at that time(2001) was still lesser than some of these nations mentioned by the NDC to support their claim yet we were considered for HIPIC.
So the question now is, how come Ghana still attained and went for HIPIC despite its DEBT TO GDP ratio being less than most of these developed and developing countries like Japan, Cape Verde, Italy, Greece and others as mentioned by the NDC.
The fact of the matter is, despite the main factor that determines ones HIPIC Status is when its DEBT to GDP ratio goes beyond the 70% mark, there are still some other factors which influence it also and as a nation that has fallen short of all these factors and thus making it impossible for us to service our debts, making our debt unsustainable, it automatically pushes Ghana into the league of countries with the HIPIC status
Thank you and may God be praised always
Nana kwadwo akwaa…. 0246913905 / 0209676413