The Institute of Economic Affairs (IEA) has thrown its support behind Ghana’s move to secure partner-country membership in BRICS, calling on authorities to establish appropriate policies and structures to ensure the country benefits from the arrangement.
The think tank believes the initiative could broaden Ghana’s global economic relations, create access to wider commercial opportunities and encourage capital inflows to accelerate industrial development.
In a communiqué released on Monday, November 9, the organisation noted that Cabinet’s endorsement of the proposal reflects Ghana’s longstanding commitment to diplomatic independence, neutrality and cooperation without alignment to competing geopolitical blocs.
It emphasised that joining the emerging economic alliance should not undermine Accra’s established ties with major development partners, including Washington, the European Union, Britain, the International Monetary Fund and the World Bank.
Instead, the IEA maintained that strengthening existing diplomatic relations alongside new engagements would provide the country with more options to pursue its economic objectives.
The Institute highlighted BRICS’ considerable global influence, noting that its member states collectively account for more than 3.5 billion people and approximately 30 per cent of worldwide economic production, offering Ghana considerable opportunities for expanded commerce.
It further recommended the introduction of local-currency payment arrangements with participating economies to minimise foreign exchange transaction expenses and reduce vulnerability to currency fluctuations.
However, the organisation warned that membership alone would not guarantee substantial gains, stressing the importance of sound economic strategies, competitive domestic products and practical support systems to enable Ghanaian enterprises to penetrate overseas markets.
The IEA concluded that Accra’s pursuit of BRICS partnership status falls within its sovereign authority to shape its diplomatic and economic engagements independently of pressure from foreign political interests.
By: Magdalene Agyeiwaa Sarpong