According to him, the Heavily Indebted Poor Countries (HIPC) funds could have propelled the Ghanaian economy if funds were diverted to necessary capital infrastructures.
“The Kufuor administration spent reliefs from the Highly Indebted Poor Country (HIPC) initiative on toilets. While South Korea took aid money to build roads, Ghana built toilets and proudly advertised them.”
Speaking at the 71st Annual Year School and Conference at the University of Ghana, the former GIPC board chair compared the strides made by South Korea, Malaysia, and Ghana as to the efficient use of accrued HIPC funds.
He explains that, although these countries have a shared socio political history, Ghana is far below these countries in terms of development.
“South Korea and Ghana shared approximately equal GDP per capita. Both countries received large amounts of foreign aids for an extended period and aid played a critical role in their development path. In both countries the state played a critical role and economic management. Today South Korea gives aids to other countries maybe even including Ghana”.
Failure of Ghana to prioritize its economic transformation agenda has resulted in the country’s current economic woes, he added.
In February 2002, the Executive Boards of the International Monetary Fund (IMF) and the International Development Association (IDA), agreed to support a comprehensive debt reduction package for Ghana under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative.