Former Finance Minister Seth Terkper has questioned the foundational purpose of global financial institutions, arguing that their original design did not prioritise Africa’s economic development.
Speaking on PM Express Business Edition on Joy News, Terkper challenged the common perception that institutions like the International Monetary Fund (IMF) and the World Bank were established to support African economies.
“Let’s put it this way: the institutions we mentioned—the World Bank and IMF—helped during past crises, which is why I use them as examples. But they were not set up to help Africa,” he stated.
His comments come amid renewed concerns about the resilience of economies like Ghana, especially in the face of external shocks such as geopolitical tensions in the Middle East.
When asked to clarify why his view might be controversial, Terkper pointed to the historical context of the institutions’ creation.
“At the time they were set up during the Bretton Woods Conference, significant funds went to countries devastated by war, like Germany and others. That was their initial purpose. Today, these institutions are not structured to stabilise African economies,” he explained.
Terkper’s remarks suggest that Africa’s interaction with global financial institutions has long been shaped by structures that were not originally designed with the continent’s needs in mind.
The former minister’s intervention adds to ongoing debates about the fairness and effectiveness of the global financial system, particularly as African economies continue to navigate vulnerabilities despite years of structural reforms.