|
Listen to article
|
As citizens in Nigeria and various Sub-Saharan African nations express increasing frustration with the economic reforms sweeping through their countries, the International Monetary Fund (IMF) has stepped in with a carefully crafted set of recommendations.
These proposals are aimed at facilitating the acceptance of these reforms by the public, with a focus on ensuring that the changes do not solely serve economic interests but also cater to the social and welfare needs of the populace.
The International Monetary Fund (IMF) has warned in its latest Regional Economic Outlook for Sub-Saharan Africa report that nations such as Nigeria, Ghana, Ethiopia, and Kenya, currently undergoing intense economic reforms, may be facing what it has termed “adjustment fatigue.”
In the case of Nigeria, the introduction of macroeconomic reforms, particularly the deregulation of the petrol and foreign exchange sectors, has led to widespread civil unrest and labor stoppages.
The IMF’s recommendations place a strong emphasis on engaging all segments of society in the reform process, encouraging governments to implement communication strategies that effectively convey the advantages of the changes to the public. It also stresses the importance of forging alliances with influential individuals within the country to facilitate smoother implementation.
The IMF further recommends that reforms be thoughtfully designed and executed in a phased manner, with compensatory measures introduced to support the most vulnerable populations.
The IMF sees a promising opportunity for the reforms to succeed, contingent upon the government’s ability to adequately address the frustrations that have become widespread among the citizenry. If these concerns are taken seriously and acted upon, the chances of the reforms being both effective and well-received are significantly enhanced.
The report stated: “In the face of popular frustration, there is also an opportunity to work to mobilize support for large, deep reforms, of the sort that, for instance, Ethiopia, Ghana, Kenya, and Nigeria are pursuing.
“Realizing this opportunity requires rethinking reform strategies, to build and maintain pro-growth coalitions among constituent leaders and the general public. This will require greater attention to communication and engagement strategies, reform design, compensatory measures, and rebuilding trust in public institutions”.
Giving further details on what should be done, the report stated: “In particular, policymakers will need to focus on broad-based engagement with populations; a participatory approach, involving a two-way dialogue with stakeholders and the population at large, can help design policy approaches; building a sense of ownership among the public, and garner support from both business and civil society”.
IMF added, “Communications should clearly articulate the benefits of reform, the costs of inaction, the accompanying compensatory measures, and correct misinformation and misperceptions.
“Partnering with key figures including parliamentarians, community leaders, and independent researchers is also essential. The emphasis should be on listening to concerns and designing appropriate responses. Providing regular updates on reform progress, and establishing ongoing feedback mechanisms, will help maintain support over time.
“Appropriate design and sequencing of reforms; the costs and benefits of multiple reforms should be appropriately spaced through time so as not to overburden populations. Demonstrable, upfront gains will boost support, and beginning with reforms that do not threaten the core benefits of multiple social groups has been shown to improve success.
Read also: Tinubu’s Reforms Not Delivering Meaningful Results – IMF Reports
“Complementary and compensatory measures; Appropriately designed and well-targeted policies to support those most affected by reforms (such as stronger social safety nets, job search assistance, and retraining) can help overcome resistance to reform by mitigating potential social costs.
“Fair and transparent management of public resources; A strong governance framework that fosters trust in government and in its ability to adequately implement policies—including by promoting transparency, increasing accountability, strengthening the rule of law, and controlling corruption—is a precondition for public backing of any reform strategy.
“Opinion surveys indicate that trust in the government’s ability to use public resources to promote the population’s well-being is still relatively low in many sub-Saharan African countries
“Fostering inclusive growth; As painful as the current policy choices are, deeper and broader reforms will be required to guarantee that countries reap the gains, and not just the pain, of reform. Most of the region is struggling with low growth, lack of jobs, and widespread social exclusion. Unlocking more durable and inclusive growth, by making the economy work more effectively for all, will simultaneously reduce both macroeconomic vulnerabilities and social frustration, easing the task of policymakers”.
The Regional Economic Outlook is the IMF’s regular update on the group of economies within the region addressing challenges and the growth opportunities.
