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Ghana Economist: Mahama Would Have Embraced Fiscal Discipline in Second Term

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  Published in Business and Finance on Thursday, January 8th 2026 at 9:41 GMT by Ghanaweb.com

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Accra, Ghana - January 8, 2026 - Dr. John Kwakye, a respected economist and former Director of the Institute for Economic Affairs (IEA), has sparked debate with a recent assertion: had former President John Mahama secured a second term in office, his governance would have demonstrably shifted toward fiscal discipline and prudent economic management. Dr. Kwakye made these remarks during an interview on JoyNews' PM Express today, offering a retrospective analysis that hinges on a 'what if' scenario of Ghanaian politics.

The economist framed his argument around a perceived evolution in Mahama's approach to governance. While acknowledging that Mahama's initial term (2012-2016) was marked by substantial government spending and increased borrowing - a characterization he bluntly labeled "spendthrift" - Dr. Kwakye posits that the former president was poised to learn from these experiences and adjust his economic strategy had he been granted another four years.

"In the first term, it was really spendthrift governance, borrowing and spending," Dr. Kwakye stated. "But I believe that had he had a second term, it would have been disciplined governance. He would have sought to rectify the mistakes of the past and so on."

This analysis immediately invites scrutiny. Ghana's economic landscape since 2016 has seen fluctuating fortunes, with periods of growth interspersed with challenges related to debt accumulation, inflation, and currency devaluation. Critics of Mahama's first term frequently cite unsustainable levels of public debt and a lack of effective fiscal control as key shortcomings. The current administration has repeatedly pointed to these issues as inherited problems requiring years of austerity measures to address.

However, Dr. Kwakye's perspective suggests a potential trajectory of correction. He implies that the lessons learned during the first term would have informed a more cautious and strategic approach to economic policy. This is not necessarily a unique argument; many political observers believe that a second term often allows leaders to build upon initial initiatives, refine their strategies, and address previously identified weaknesses. The question remains, however, whether the structural issues hindering Ghana's economic progress could have been overcome solely through a change in managerial style.

The claim also raises questions about accountability and the counterfactual nature of historical analysis. While Dr. Kwakye offers a reasoned prediction, it is, by definition, based on speculation. There is no concrete evidence to support the assertion that Mahama would have demonstrably altered his economic approach. Nonetheless, Dr. Kwakye's position is informed by his deep understanding of Ghana's economic workings and his past interactions with various administrations.

Furthermore, the context of the 2020 election, where Mahama ran against incumbent Nana Akufo-Addo, is crucial. The election was fiercely contested, with economic management being a central theme. Akufo-Addo's campaign focused heavily on promises of economic stability and job creation, implicitly criticizing Mahama's first-term performance. Dr. Kwakye's statement can, therefore, be seen as a subtle challenge to the narrative that Mahama's economic policies were inherently flawed.

Looking ahead, the debate surrounding Ghana's economic path is likely to continue. The nation faces ongoing challenges related to debt sustainability, unemployment, and infrastructure development. Understanding the perspectives of experienced economists like Dr. Kwakye, even when based on hypothetical scenarios, provides valuable insights into the complex factors shaping the country's economic future. His comments underscore the importance of both experience and adaptability in effective governance, and prompt consideration of how different leadership choices might have altered the course of Ghana's economic history.