ย The International Monetary Fund, IMF, has issued a damning verdict on the reforms being implemented by the Tinubu Administration.
The global institution advised the Nigerian government on a set of recommendations on how to galavanise the people’s support for it reforms.
Specifically, the IMF, in its latest Regional Economic Outlook for Sub-Saharan Africa report, stated that the countries involved in far-reaching reforms including Nigeria, Ghana, Ethiopia and Kenya, may now be experiencing what it called โadjustment fatigueโ while some are facing civil resistance.
Nigeria witnessed the #EndBadGovernance protests even as the Federal Government has faced harsh criticism from the civil society, the media and the opposition.
The report stated: โIn 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.
โRealizing 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 institutionsโ.
Giving further details on what should be done, the report stated: โIn 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 societyโ.
IMF added, โCommunications should clearly articulate the benefits of reform, the costs of inaction, the accompanying compensatory measures, and correct misinformation and misperceptions.
โPartnering 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.
โAppropriate 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.
โComplementary 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.
โFair and transparent management of public resources; A strong governance framework that fosters trust in government and in its ability to adequately implement policiesโincluding by promoting transparency, increasing accountability, strengthening the rule of law, and controlling corruptionโis a precondition for public backing of any reform strategy.
โOpinion surveys indicate that trust in the governmentโs ability to use public resources to promote the populationโs well-being is still relatively low in many sub-Saharan African countries
โFostering 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 policymakersโ.
The Regional Economic Outlook is the IMFโs regular update on the group of economies within the region addressing challenges and the growth opportunities.
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