Former Finance Minister Seth Terkper has questioned the foundational purpose of global financial institutions, arguing that Africa’s vulnerability to external shocks reflects deeper structural imbalances in the international system.
Speaking on PM Express Business Edition on Joy News on Thursday, Mr Terkper responded to concerns about Ghana’s continued exposure to global shocks, including tensions in the Middle East, despite years of structural reforms.
The host pointed to lingering fears about how such global disruptions could impact the Ghanaian economy and asked why past reforms have not built enough resilience.
In response, Mr Terkper turned attention to the role of multilateral institutions like the World Bank and the International Monetary Fund.
“Let’s put it this way, the institutions that we mentioned – the World Bank and IMF – that helped during the crisis, you talk about it, that’s why I’m using them as examples. They were not set up to help Africa,” he said.
The host challenged the assertion, describing it as debatable.
But Mr Terkper insisted his argument was rooted in history, pointing to the context in which the institutions were created.
“I am saying that at the time they were set up, the Bretton Woods Conference, a substantive flow went to the countries that were engaged in a war, Germany and the rest, which were devastated. Those are the first financing, but today they don’t go to those institutions to stabilise.”
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