The Director of the Institute of Statistical, Social, and Economic Research (ISSER), Professor Peter Quartey, has highlighted the hidden costs of aid dependency.

According to him, the over-reliance on external financial support erodes Ghana's policy independence and ultimately impoverishes the nation.

Professor Quartey explained that while foreign aid might appear to be free money, it comes with significant strings attached.

“We receive aid, you will think it is free money but aid is not free; it comes at a cost. Your country loses its independence. Your policies are not independent,” he told the Host, Kojo Yankson on the Super Morning Show on Joy FM on Wednesday, June 18.

Highlighting the detrimental effects of this dependency, Prof Quartey noted that foreign donors often dictate policies, leading to frequent policy reversals and instability.

“Sometimes policies are dictated. So we do not have absolute independence when it comes to policies; that is why we have policy reversals. We introduce a policy and then we remove it,” he said on Thursday.

The imposition of externally influenced policies, according to Prof Quartey, can result in severe socio-economic consequences.

“Sometimes we introduce policies that are very harsh, which brings hardships to the citizens and forces them to jump on the streets to demonstrate," he said.

Read Also: Ghana must cease relying on external aid – Lord Boateng

Mr Quartey’s assertion comes after the Member of the House of Lords in the United Kingdom, Lord Paul Boateng in his keynote speech at a leadership lecture at the UPSA in Accra said it is time Ghana moves away from reliance on foreign aid.

Lord Boateng indicated that the country will not experience any significant growth since the dependence on external aid hinders progress.