Former Finance Minister Seth Terkper has questioned the original purpose of global financial institutions, arguing that Africa’s continued vulnerability to external shocks reflects deeper structural imbalances in the global economic system.
Speaking, on Thursday, Mr Terkper addressed concerns about Ghana’s exposure to global disruptions, including ongoing tensions in the Middle East, despite years of economic reforms.
The programme host raised concerns about the country’s limited resilience to such shocks and questioned why previous reforms have not provided stronger protection for the economy.
In response, Mr Terkper pointed to the role of multilateral institutions such as the World Bank and the International Monetary Fund. He argued that, historically, these institutions were not designed with Africa’s development needs in mind.
“They were not set up to help Africa,” he said, acknowledging that the claim may be contested.
He explained that his view is grounded in history, referencing the Bretton Woods Conference, where the institutions were established. According to him, initial financial support was largely directed toward countries devastated by World War II, particularly in Europe, to support reconstruction efforts.
While these institutions have evolved over time, Mr Terkper suggested that their origins continue to shape how global financial support is structured today.