The government must exert political will, according to Professor Stefan Dercon, Professor of Development Economics at the Centre for the Study of African Economies (CSAE).

That, according to him, would necessitate immediate fiscally responsible actions like reducing government spending.

Long-term prospects are promising, but getting there is difficult and politically costly for those in positions of power.

We simply need to figure out a method to get through it.

Ignoring it will unquestionably be the largest error you can make since it will prevent longer-term growth, he continued.

The Professor gave the advice on Monday during a lecture on the topic: “Gambling on Development”.

It was organised by the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Legon and CSAE.

Prof Dercon said the implementation of fiscal restraints would cause political issues because certain key sectors of the economy, such as infrastructure, among others, would be affected.

“Such stabilisation efforts will be tough but it’s now that these seeds have to be sown for a future better growth. It would involve cautious political behaviour with government budgets to make sure Ghana goes back to the period of remarkable growth since the 1990’s.”

“The success of a country is measured by its ability to correct errors in its economic policy. This won’t be easy. It would involve careful policy making, great communication by the leadership to the population. I’m optimistic that Ghana can make it happen,” he said.

However, he said, in doing so, they should be mindful not to fundamentally undermine the impact of such restraints on the “poorest” in society or “indeed what could be the engines of growth”.

He commended Ghana’s “early” move to the International Monetary Fund, adding that, the Fund acted as a useful external form of “correction” in cases when internal accountability could not deliver.