1. Introduction

The relationship between the International Monetary Fund (IMF) and the Government of Ghana (GoG) can be characterized as a cyclical pattern of dependency and adjustment. Like many developing nations in West Africa, Ghana has historically relied on multilateral loans to fund development initiatives and address economic challenges, with the IMF serving as a major source of such financial support. Despite the implementation of various IMF funds and programs from 1992 to the present, there remains a critical need to evaluate their economic and social impacts, as well as the challenges they present to Ghana’s economy (Adu-Gyamfi & Andoh, 2018; Osei-Assibey & Mohan, 2018). External debt arises when a country borrows from foreign creditors, such as global financial institutions, commercial banks, and other governments. A debt crisis often emerges when a nation with a fragile economy struggles to repay these obligations due to insufficient revenue generation from manufacturing and trade (IMF 2020). Although external borrowing may seem a viable solution during economic distress, consistent reliance on loans can lead to significant adverse consequences for both present and future generations, including deteriorating living standards, increased dependency on foreign aid, currency depreciation, and overall economic decline. From 1960 to 2019, Ghana’s foreign debt averaged approximately $6.58 billion, peaking at an all-time high of $26.95 billion in the fourth quarter of 2019 Abor, (2018). This escalating debt has consistently been linked to income shortfalls and excessive government expenditures (Amo-Yartey, 2014; Kusi, 2015; Kwakye, 2014). The role of external debt as a driver of growth has sparked intense debate among economists and policymakers IMF (2019). The recent COVID-19 pandemic compelled Ghana to elevate its spending to mitigate the pandemic's effects, highlighting the need for the government to borrow internally or externally from international financial markets, including the IMF and the World Bank, to finance development projects. By 2013, Ghana’s total debt had reached $15.83 billion, representing about 33% of GDP Abor (2018). The IMF programs enabled Ghana’s participation in the HIPC Initiative, resulting in considerable debt relief and easing the country’s debt repayment obligations (Abor, 2018; IMF, 2021). Through this initiative, Ghana secured substantial debt forgiveness from bilateral and multilateral creditors, including the IMF, allowing it to reduce external debt, redirect funds toward development goals, and increase fiscal space for investments in infrastructure, education, and healthcare (Abor, 2018; IMF, 2021). The debt relief from IMF programs also enhanced Ghana’s debt sustainability, reducing the risk of debt distress and strengthening the country’s credit standing, which made it more feasible for Ghana to access international financial markets and attract foreign direct investment (FDI) (Abor, 2018; IMF, 2021). Similarly, Owusu, J. A. (2019) indicated that, Structural Adjustment Programs (SAPs) are economic reforms implemented by international financial institutions like the IMF to address balance of payments issues in developing countries. According to Mohammed et al. (2019), these programs typically include a suite of policy reforms aimed at enhancing a country’s export capacity and competitiveness. Following its transition to a republic, Ghana faced significant financial challenges that required IMF assistance. From 1960 to 1965, the Ghanaian economy experienced severe downturns, leading to hyperinflation, a deteriorating balance of payments, and dwindling foreign reserves (Gyasi et al., 2019). These economic struggles ultimately led Ghana to seek IMF support following its first military coup. Since 1966, Ghana has engaged in multiple loan agreements with the IMF across various administrations. Ghana’s renewed engagement with the IMF in 2022 has sparked widespread debate, raising questions about the implications of IMF loans on the national economy (IMF 2020). Working alongside development partners and stakeholders, the Ghanaian government has aimed to build on insights gained from IMF programs by implementing supportive policies and strategies for sustainable, inclusive growth (World bank 2021). These efforts focus on diversifying the economy, encouraging value addition in key sectors, advancing human capital development, and enhancing the business environment. The overarching goal is to establish a more resilient, inclusive economy that can better withstand external shocks, generate employment, and reduce poverty and inequality (Gyasi et al., 2019). Despite extensive implementation of IMF programs from 1992 to 2020, a thorough assessment of their impact on the Ghanaian economy is still needed (Adu-Gyamfi & Andoh, 2018; Osei-Assibey & Mohan, 2018). While these programs are often praised for fostering macroeconomic stability, providing debt relief, and supporting structural reforms (IMF, 2020), concerns remain regarding their effectiveness and long-term sustainability (Osei & Quartey, 2015). These concerns motivated the authors to research this topic.

This study seeks to address the following objectives: assess the economic impacts of IMF loans on Ghana’s economy, examine the social impacts of these loans, evaluate potential risks associated with the loans in relation to Ghana’s economic development, and identify the challenges posed by IMF loans. To achieve these objectives, the paper addresses questions such as: What are the economic implications of IMF loans on Ghana’s economy? What are the social implications of IMF loans? What potential risks are associated with IMF loans for Ghana’s economic development? And what are the likely challenges of IMF loans in the country? Ultimately, the findings will serve as a valuable resource for policymakers and citizens, enabling a critical assessment of the effects of such loans on Ghana’s economy. According to Abor (2018) and the IMF (2021), debt relief has been an important impact of IMF programs in the country. These programs aim to alleviate Ghana’s external debt burden and improve debt sustainability through various initiatives and policy measures. To fully leverage the advantages of debt relief and external financing for sustainable, inclusive development, Ghana must maintain sound financial management practices and ensure efficient project execution (Abdallah et al., 2020; IMF, 2021).

2. Literature Review

2.1. Conceptual and Theoretical Review

Macroeconomic Stability

Balance of Payments and Debt Relief: IMF loans are typically aimed at addressing short-term balance of payments deficits. By providing Ghana with needed foreign exchange, IMF loans can help stabilize the currency, prevent depletion of foreign reserves, and support the government's budget in times of fiscal shortfall (World Bank (2019).

Stabilization Policies: IMF loans are often accompanied by stabilization policies, which include measures like fiscal consolidation, structural reforms, and monetary tightening to address underlying economic imbalances. In Ghana, this has generally involved efforts to reduce the fiscal deficit by curtailing public expenditure and increasing revenue through tax reforms (IMF, 2020).

Fiscal Policy and Government Spending

Austerity and Fiscal Discipline: One of the hallmarks of IMF programs is the imposition of fiscal austerity to reduce public debt and budget deficits. In Ghana, this can mean reduced government spending on social services, public sector wages, and subsidies. This can lead to immediate economic challenges for the population, particularly for low-income groups that rely on government programs for support (World Bank (2019).

Debt Sustainability: The IMF often provides support to ensure Ghana's debt remains sustainable by advising on debt restructuring or establishing strict borrowing limits. While this theoretically promotes long-term fiscal health, it can also restrict Ghana’s ability to finance essential infrastructure projects and social programs in the short term (IMF, 2020).

Economic Growth and Development

Growth Trade-offs: IMF-supported policies often have a short-term contractionary effect on the economy due to austerity measures. Ghana's growth trajectory may be affected if reductions in public spending led to decreased investment in human capital and infrastructure, crucial elements for long-term growth (Huq, M 2018).

Structural Reforms: In Ghana, IMF loans have sometimes come with conditions for structural reforms intended to promote long-term economic resilience. These reforms may include privatization of state-owned enterprises, deregulation, and labor market adjustments. Theoretically, these policies are designed to foster efficiency, increase competition, and enhance productivity, though they may also have adverse impacts on local employment and income distribution (IMF 2020).

Social Impact and Poverty

Poverty and Inequality: IMF programs can disproportionately impact low-income households due to reductions in government spending on social services, health, and education. For Ghana, IMF loan conditions may reduce social spending, limiting access to essential services for vulnerable groups (IMF 2019).

Safety Nets and Social Programs: In recent years, the IMF has incorporated some flexibility, allowing countries to maintain critical social programs. However, maintaining an adequate social safety net while meeting IMF loan conditions remains challenging for Ghana, and the social impact remains a critical consideration in evaluating the effectiveness of IMF assistance (World Bank (2019).

Exchange Rate and Inflation Control

Exchange Rate Stabilization: IMF interventions are often designed to stabilize the currency and restore confidence in the exchange rate. For Ghana, this may involve policies aimed at preventing excessive depreciation of the Ghanaian cedi. A stable exchange rate can improve investor confidence, but restrictive measures may also limit the Central Bank’s ability to independently control the money supply (IMF, 2019).

Inflation Control: High inflation can erode purchasing power and negatively impact economic stability. IMF programs usually include inflation-targeting policies, such as interest rate adjustments, which the Bank of Ghana has adopted under IMF guidance. However, such monetary tightening can constrain private sector investment and consumption, potentially slowing economic growth (World Bank 2021).

2.2. Empirical Review

Upon gaining independence in 1957, Ghana’s new government adopted socialist economic practices that allowed for public engagement and regulation of industries. However, the country's economy remained heavily reliant on cocoa exports, which suffered a significant decline in global prices during the early 1960s. This downturn left the Nkrumah administration without the necessary revenue to support its socialist development agenda (Aryeetey & Kanbur, 2017). Additionally, the government faced intense criticism from the private sector for its market interventions, including import restrictions and price controls. Nkrumah and his administration were accused of crafting economic policies aimed at attracting foreign investment and undermining political opponents rather than genuinely fostering industrialization and supporting local businesses (Aryeetey & Kanbur, 2017). The military coup that ousted Nkrumah did not improve the economic situation in Ghana. The subsequent regime, known as the Provisional National Defense Council (PNDC), prioritized economic independence through the growth of the agricultural sector, leaving the industrial infrastructure developed in previous eras largely underutilized. This failure to maximize the industrial capacity, coupled with poorly executed economic development strategies during a politically volatile period, led to commodity shortages and escalating inflation rates (Aryeetey & Kanbur, 2017). Critics argue that the IMF’s broadening scope may diminish program effectiveness, fueling further discontent. They contend that much of the IMF criticism stems from a misalignment between its fundamental responsibilities and broader goals, such as achieving high economic growth, low inflation, and poverty alleviation. Empirical research examining the effects of IMF programs has utilized various methodologies, some of which have notable limitations (Barro & Lee, 2005; Haque & Khan, 1998). "Before-and-after" comparisons are often unreliable, as they assume that no changes occurred between the two periods except for the introduction of an IMF program. Evaluating program outcomes against targets can be problematic due to significant implementation issues and the potential for targets to be set either too optimistically or pessimistically. While simulations using economic models can provide insights into the effects of Fund-type policies, they do not reflect the actual impacts of IMF programs ((Kusi, et, al. 2015). Comparisons between program and non-program countries face the challenge of systematic differences that may influence economic performance (Adomako et. al 2017). Furthermore, several studies have suggested alternative methods for developing countries to raise funds for economic development projects while ensuring debt sustainability. For instance, A. G. Awan and Qasim (2020) propose that countries can generate funds through productivity improvements, increased tax revenues, and exports. A. G. Awan and Aslam (2015) argue that domestic borrowing, as it can be repaid in the country's currency, is preferable to external borrowing, which often imposes stringent conditions and pressures on governments.

2.3. Conceptual Framework

The diagram below allows for an analysis of the causal chains through which IMF loans impact various aspects of Ghana’s economy: society, economic, and governance. The mediating variables highlight the mechanisms that transmit the influence of IMF loans to the economic and social outcomes observed.

Figure 1

The fig 1 above represent the conceptual framework for the effects of IMF loans on Ghana's economy. Taking into consideration the variables used in the study.

• Independent Variables (on the left): Representing IMF loans and associated conditions. Factors directly linked to IMF loans and programs such as IMF Loan Amount, IMF Loan Conditions and Duration of IMF Program.

• Mediating Variables (in the middle): Capturing mechanisms through which IMF loans influence outcomes. Variables that capture the mechanisms and processes through which IMF loans influence the dependent variables such as Economic Performance Mediators, Social Impact Mediators, and Governance and Policy Reform Mediators.

• Dependent Variables (on the right): Outcomes reflecting economic, social, and governance impacts. Outcomes that reflect the economic, social, and governance impacts of IMF loans on Ghana’s economy such as Economic Outcomes, Social Outcomes and Governance Outcomes.

The arrows illustrate the relationships between variables, showing how the independent variables influence the dependent variables through the mediators.

3. Methodology

This research on the Impact of IMF loans on the Economy of Ghana is purely quantitative. A quantitative research method involves gathering numerical data that can be converted into statistics for analysis. According to DeFranco (2011, para 3), this approach is used to measure and analyze variables like views, attitudes, behaviors, and opinions. The data gathered can be generalized to a larger population, helping researchers to establish facts, identify patterns, and provide evidence. Conducting quantitative research requires familiarity with statistical concepts like standard deviations and correlations for interpreting data. Data collection in this method can take various forms, including online or paper surveys, mobile surveys, kiosk surveys, and face-to-face or telephone interviews. Also, Creswell (2003) notes that knowledge is always an incomplete truth, suggesting that the evidence from research is inherently imperfect and subject to change (p. 7). This type of research method benefits scientists by enabling extensive, in-depth studies with accurate results. The clarity of quantitative data also facilitates easy comparisons across different datasets.

Population and Sample Size

In research, population and sample size are key concepts used to gather and analyze data effectively Creswell, J. W. (2014). Population: This refers to the entire group of individuals, items, or entities that a researcher is interested in studying. For example, if a study aims to understand the eating habits of college students in the U.S., the population would be all college students across the country. However, studying every single person in a large population can be impractical or impossible due to time and resource constraints. Sample Size: This is a smaller, manageable group selected from the population that represents the larger group. Researchers use sampling methods to select a sample that reflects the characteristics of the entire population as accurately as possible. For instance, instead of surveying all U.S. college students, researchers might select a sample of 1,000 students from different states, ages, and backgrounds. The sample size depends on the study's goals, the population size, and how precise the researcher wants the findings to be (Creswell, J. W. 2014). Using a well-chosen sample allows researchers to make inferences about the entire population without having to survey everyone. The target population consists of individuals living across the country. One hundred and twenty (120) individuals were interviewed online from this population. Primary data was collected using a structured questionnaire, which included both open-ended and closed-ended questions.

Data Analysis

Saunders et. al (2009) explains data analysis is the process of examining, cleaning, transforming, and interpreting data to uncover meaningful insights, patterns, or trends. It’s a critical step in research that helps answer questions, test hypotheses, and inform decisions. The responses to each item in the questionnaire were tallied to determine the total number of respondents who answered each question. Each questionnaire was numbered and edited before coding. The raw scores were analyzed using Statistical Package for the Social Sciences (SPSS) software. Descriptive statistics, such as frequencies and tables, were used in the data analysis. Additionally, regression analysis was applied to examine the effects of IMF loans on the Ghanaian economy, helping readers to better understand the findings. The regression model used in the study is presented below.

Model Specification

Using the above conceptual framework, a multi-equation regression model below was set up to analyze the effects of IMF loans on economic, social, and governance outcomes in Ghana.

Outcomei=α+β1(IMF Loan Amount)+β2(IMF Loan Conditions)+β3(Duration of IMF Program)+γZi+ϵi

where:

Outcomei represents the dependent variables (Economic Outcomes, Social Outcomes, or Governance Outcomes),

α is the intercept term,

β1\beta_1β1, β2\beta_2β2, and β3\beta_3β3 are the coefficients for the independent variables,

ZiZ_iZi represents mediating variables (Economic Performance Mediators, Social Impact Mediators, Governance and Policy Reform Mediators),

γ is the vector of coefficients for mediating variables,

ϵi\epsilon_iϵi is the error term.

Economic Outcomet=α+β1(IMF Loan Amountt)+β2(IMF Loan Conditionst)+β3(Duration of IMF Programt)+γ1(GDP Growtht)+γ2(Investment Levelst)+ϵt

Social Outcomet=α+β1(IMF Loan Amountt)+β2(IMF Loan Conditionst)+β3(Duration of IMF Programt)+γ1(Poverty Ratet)+γ2(Healthcare Accesst)+γ3(Education Qualityt)+ϵt

Governance Outcomet=α+β1(IMF Loan Amountt)+β2(IMF Loan Conditionst)+β3(Duration of IMF Programt)+γ1(Policy Reform Indext)+γ2(Transparency Indext)+ϵt

Variable Definitions

Dependent Variables (Outcomes):

• Economic Outcome: GDP per capita growth, debt-to-GDP ratio, fiscal stability.

• Social Outcome: Standard of living index, healthcare accessibility score, education attainment score.

• Governance Outcome: Governance quality index, regulatory effectiveness.

Independent Variables:

• IMF Loan Amount: Total amount of IMF loans provided to Ghana during the period ttt.

• IMF Loan Conditions: A numerical index representing the strictness of loan conditions.

• Duration of IMF Program: The number of years Ghana is enrolled in an IMF program during period ttt.

Mediating Variables:

Economic Performance Mediators: GDP growth, inflation rate, investment levels.

Social Impact Mediators: Poverty rate, healthcare access index, education quality index.

Governance and Policy Reform Mediators: Policy reform index, transparency index, governance effectiveness.

Ethical Considerations

Ethical considerations in research are principles and guidelines that ensure research is conducted responsibly, respecting the rights, dignity, and welfare of participants. Ethical guidelines are essential to maintaining trust, integrity, and accountability in research, protecting participants, and ensuring results are credible and reliable. Robson C. (2002). Ethical considerations were prioritized throughout the data collection process. Informed consent was obtained from all participants, ensuring they were fully aware of the research objectives, their voluntary involvement, and their rights as research subjects. Confidentiality was strictly maintained, with all personally identifiable information safeguarded and used solely for research purposes. The study adhered to established ethical guidelines and regulations to protect the welfare and privacy of all respondents involved.

4. Result and Discussion

Demographic Profile of the Respondents

The background characteristics of the respondents were sought. This included the Gender, Age distribution (Group), Educational level, Occupation and Location of the respondents. The results were analysed

Table 1. Background Information (N=120)

The Table 1 shows the results of the respondents’ demographic data. The gender distribution of the respondents, depicts that most (n = 79; 65.83%) of respondents were males while the remaining were females (n = 41; 34.17%). Which also implies that majority were male. Ages of the respondents shows that more than half of the total respondents (n = 103; 85.83%) were below 30years, followed by (n = 15; 12.5%) of the respondents who fall between 31years to 40years. This was also followed by (n=2; 1.67%) who were 41years and above. This suggests that most of the respondents were matured, hence, they could provide relevant information about their concern on IMF loans. Educational background showed that most (n=114; 95%) of the respondents were Tertiary graduate. This was followed by (n=5; 4.17%) who were Secondary graduate. It was also found that (n=1; 0.83%) was basic graduate. It was clear that most of the respondents were having high educational level. Table 1 also shows that most of the respondents (n=84; 70%) were students. However, (n=16; 13.33%) of the respondents were Employed. This was followed by (n=14; 11.67%) who were self-employed. It was also found that, (n=6; 5%) of the respondents were unemployed. Analysis of location shows majority (63; 52.5%) of the respondents came from central region of Ghana. This was followed by (n=22; 18.33%) of them came from Grater Accra region. It was also found that, (n=12; 10%) of the respondents came from both Ashanti region and Western North. Also, respondents from Ahafo, Oti and Volta region of Ghana was (n=1; 0.83%) which represent the least number of responses from the eight regions selected.

Economic Impacts of IMF loans on Ghana's Economy

Under this section, four questions were asked to aid in analysing the economic impacts of IMF loans from our various participants through the online questionnaires, ranging from general economic growth, inflation, infrastructure development and employment rate, and below were their responses.

Table 2. How Have IMF Loans Impacted Ghana’s Economic Growth?

From table 2, it indicates that, out of the total of 120 participants in this study, 30 of them representing 25% hold the view that the general economic growth level is negatively affected by the inflow of IMF loans. Nevertheless, 39 of the respondents representing 32.5% were indecisive as to whether inflow of fund from IMF has negative or positive impacts. Also, 21 participants (17.5%) opine that IMF loans positively affect the economic growth of Ghana as against the responses of the 25%. But 20 and 10 representing 16.7% and 8.3% believe that, there are higher negative and positive impacts respectively on the economic growth of Ghana when it uses multilateral loans, specifically loans from IMF. Overall, the responses point out that impacts on the economic growth level from using IMF loans is adverse, that is 41.7% of the total participants view which contradicts IMF report which holds that, IMF loans and programs have been praised for their role in promoting macroeconomic stability, providing debt relief, and facilitating structural reforms. The rise in both domestic and foreign investment has played a key role in expanding productive sectors, creating jobs, and developing infrastructure.

Table 3. How Have IMF Loans Affected Inflation Rates in Ghana?

To help further analyse the economic implications of using IMF loans on the economy of Ghana, we assessed its impact on inflation, from Table 3, 21(17.5%) believe that IMF loans does not affect or cause any change to inflation whether a decrease or an increase. Albeit, 37 and 34 participants representing 30.8% and 28.3% opined that inflow of IMF loan causes significant and slight increase respectively in the general inflation rate of Ghana.

Table 4. To What Extent Do You Believe That IMF Loans Have Improve Infrastructure Development in Ghana?

From table 4, 17 participants (14.1%) developments in infrastructure have not been impacted with inflow of IMF loans with 48 and 32 of our respondents representing 40% and 26.7% hold that the impact of IMF loans on infrastructure is not much and somewhat rarely visible respectively as compared to the 23 participants who represent 19.2% of the sample with the view that IMF loans has a very much impact on the infrastructure development of Ghana leading to higher economic growth.

Table 5. How Do You Perceive the Impact of IMF Loans on Employment Rates in Ghana?

Table 5 seek to analyse the perceptions people have on the impact of IMF loans on the employment in Ghana. 41 out of the 120 respondents which represents 34.1% perceive that, there is no of IMF loans on job creation or limitation to employment in the public sector. But 23 (19.2%) and 11 (9.2%) respondents, perceive a very negative impact on the rate of employment in the public sector. That is, these respondents believe that whenever GoG is under any IMF program it is restricted in its power to add more or new employees to those already employed under the public sector. Notwithstanding this, 26 and 19 respondents representing 21.7% and 15.8% perceive the impact of IMF loans on employment rate in Ghana to be highly positive. Overall, majority of the respondent perceived a positive impact of IMF loans on the employment rate in Ghana in the public sector.

Table 6. Impacts of IMF Loans

Table 6 delineates the results concerning the respondents' perceptions of Ghana's Economic Impact: The average score for the inquiry regarding the influence of IMF loans on economic growth is 2.67, accompanied by a standard deviation of 2.51. This finding implies a predominantly affirmative perception; however, the elevated standard deviation signifies a considerable diversity of opinions among the respondents. The average score concerning the impact of IMF loans on inflation rates in Ghana is 3.63, with a standard deviation of 3.31, suggesting a more pronounced positive perception regarding the efficacy of IMF loans in the management or control of inflation. The substantial standard deviation once more underscores the notable variability in the responses. With an average score of 2.64 and a standard deviation of 2.29, respondents appear to hold a moderately positive perspective on the influence of IMF loans on infrastructure development, indicating some degree of belief in enhancements, albeit with considerable variation in viewpoints. The analysis concerning the ramifications on employment rates reveals a mean value of 2.68, accompanied by a standard deviation of 2.44. This finding implies a perception of modestly favorable effects; however, it is important to note that the responses exhibited considerable variability. The average score pertaining to the effects on social services is 3.14, with a standard deviation of 2.82, signifying a relatively positive perception regarding advancements in healthcare, education, and related areas, which are influenced by IMF loans, although notable discrepancies in opinions persist. With a mean of 3.24 and a standard deviation of 2.91, respondents express a comparatively robust conviction that IMF loans have favourably impacted poverty levels in Ghana, yet once more, perspectives on the magnitude of these alterations diverge. The mean perception concerning income inequality stands at 3.22 (SD = 2.87), indicating that a substantial number of individuals hold such belief.

Social implications of IMF loans on the Economy of Ghana?

What are the social implications of IMF loans on the economy of Ghana?

Table 7. How Have IMF Loans Affected Social Services like Healthcare, Education in Ghana?

From tables 7 above out of 120 respondents, 9 believe that IMF programs very negatively impact social services like healthcare and education provided to citizens. This aligns with earlier findings from the IMF, which indicate that while the primary goal of these programs is to achieve macroeconomic stability, the implementation of austerity measures and cuts in social spending often adversely affect vulnerable populations, raising concerns about social inequality and welfare. However, 38 respondents, representing 31.7%, expressed uncertainty regarding the impact of IMF loans on the social services offered by the country. In contrast, 33 respondents (27.5%) and 14 respondents (11.7%) indicated that they perceive a positive relationship between IMF loans and the level of services available to citizens. This perspective supports the IMF’s assertion that targeted social safety nets and poverty reduction programs were implemented alongside their programs.

Table 8. Have You Noticed any Changes in Poverty Levels in Ghana as A Result of IMF Loans?

Table 8, contains the response of our participants in relation to their observations regarding the relationship between IMF loans and the poverty levels in Ghana, taking into consideration the social impacts of poverty on the livelihood of Ghanaians. 49 respondents representing 40.8% believe that the poverty level Ghanaian citizenry has not changed notwithstanding the inflow of loans from IMF, others which is, 25 representing 20.8% slight increase and 19 representing 15.8% of the participants are of the view that due to the austerity measures and conditionalities attached to IMF loans, poverty level of Ghanaian citizens turn to increase when there an IMF supported program in Ghana. But 7 (5.8%) participants opine that, there is a significant decrease whenever there is an inflow of IMF supported loan with 20 (16.8%) respondents having the view that, there is always a slight decrease in the poverty level of Ghanaians when the economy is under an IMF supported facility, this is in confirmation to the already existing research work which concludes that, Ongoing efforts are actively reshaping the landscape of Ghana's economic reforms, aiming to enhance their sustainability and effectiveness. The Ghanaian government, in partnership with development allies and stakeholders, is diligently applying insights gained from previous IMF programs. By implementing complementary policies and strategies, they are laying the groundwork for sustainable and inclusive growth.

Table 9, gathered the responses of our participants in this research as illustrated above. Out of the 120 respondents for this research, 41 participants representing 34.2% believe that IMF loans do not cause any change in the income inequality level in Ghana, with 14 (11.7%) and 34 (28.3%) of the respondents saying that IMF loans in Ghana significantly and slightly increase income inequality among Ghanaians, but, 5(4.2%) and 26 (21.7%) of the respondents hold the view that inflow help of IMF loans helps to significantly and slightly reduce the level of income inequality among Ghanaians.

Table 9. How Do You think IMF Loans Have Influenced Income Inequality in Ghana?

Correlational Analysis of Study Variables

To determine the relationships among the variables examined in this study, Pearson’s product-moment correlation analysis was conducted. The results revealed both positive and negative correlations among the investigated variables, as demonstrated in the Pearson’s product-moment correlation matrix shown in table 10 below.

Table 10. Correlation

The association between loans from the International Monetary Fund (IMF) and the provision of social services exhibits a pronounced negative correlation (correlation = -0.904, significance = 0.001). This observation indicates that as Ghana secures financial assistance from the IMF, there is a concomitant deterioration in the quality or accessibility of essential social services, such as healthcare and education. The adverse effects may be attributed to austerity measures or structural adjustments mandated by the IMF as prerequisites for these loans, which frequently prioritize fiscal rectitude over social expenditure. The social impact of IMF programs in Ghana has been a subject of considerable debate and examination. Although these programs primarily aim to achieve macroeconomic stability, the enforcement of strictness measures and cuts to social spending often negatively affect the vulnerable people, which always raises alarms about social inequality and welfare (IMF, 2019). Moreover, there is a significant negative correlation between the conditions tied to IMF loans and the concept of national sovereignty (correlation = -0.904, significance = 0.001). This finding implies that the requirements associated with IMF loans, which generally demand economic reforms, can considerably undermine Ghana's national sovereignty. Such stipulations may force the government to implement policies that do not align with the country's socio-economic goals or the preferences of its citizens, suggesting a potential loss of national autonomy in the quest for external financial aid. Additionally, the relationship between IMF loans and employment rates shows a weak positive correlation (correlation = 0.049, significance = 0.879). The high significance value indicates that this connection lacks statistical significance, suggesting insufficient evidence to claim that IMF loans have a meaningful impact on employment rates in Ghana. This is concerning, as stable employment is crucial for promoting economic growth and ensuring social stability. Lastly, the correlation between IMF loans and income inequality reveals a moderate positive relationship, with a correlation coefficient of 0.584 (significance = 0.046). relationship possesses statistical significance.

Regression Analysis among study variables

Table 11. Model Summary

The coefficient of correlation, denoted as R, is quantified at 0.408. This statistic signifies a moderate positive association between the independent and dependent variables in question. It implies that an increase in the independent variable(s) is generally accompanied by a corresponding increase in the dependent variable, albeit the strength of this correlation is not exceedingly robust. The R Square value, reported as 0.167, indicates that roughly 16.7% of the variability in the dependent variable can be elucidated by the independent variable(s) incorporated within the analytical model. Although this finding reveals a degree of explanatory capability, it concurrently indicates the presence of numerous additional factors not captured within the model that may exert influence on the dependent variable. The Adjusted R Square value is calculated at 0.131. This metric accounts for the number of predictors included in the model, thereby offering a more precise assessment of the model's goodness of fit. An Adjusted R Square of 0.131 suggests that approximately 13.1% of the variability in the dependent variable is explicable when accounting for the number of predictors utilized.

Table 12. Anova Results

The data analysis results presented in Table 12 above elucidate the findings of the regression analysis. It is evident that the regression model exhibited statistical significance (F = 4.745; P = .002) for predictive purposes, substantiated by its statistical significance at the 99.8% confidence interval. This suggests that the regression model possesses overall significance, indicating that the collected data aligns more effectively with the regression model in elucidating the potential risks associated with using multilateral loans from the IMF on Ghana’s economic development.

Table 13. Coefficients

The Intercept (Constant) value of 59.804 denotes the expected value of the dependent variable when all independent variables are maintained at zero. This can be interpreted as a baseline level of the outcome under investigation. The Influence of IMF Loan Conditionalities 0.018. This coefficient indicates that for each unit increment in the variable that measures the influence of IMF loan conditionalities, the dependent variable (potentially indicative of national sovereignty) is anticipated to increase by 0.018, while controlling for other variables. The standard error of the constant figure, which is 13.283, quantifies the extent of variability associated with the estimation of the intercept. A heightened standard error in relation to the coefficient may suggest a reduced level of confidence in the estimate. It is also illustrated in Table 13 that a standard error of 0.404 encapsulates the variability surrounding the coefficient for the impact of IMF conditions, signifying a relatively substantial degree of uncertainty associated with this coefficient. A standardized coefficient of 0.014 represents the number of standard deviations by which the dependent variable is projected to change, given a one standard deviation modification in the predictor variable (IMF loan conditionality).

5. Summary and Conclusions

The paper assessed the impacts of IMF loans on the economy of Ghana, with emphasis on the IMF and Ghana case. A total of 120 online closed-ended questionnaires filled by participants across the whole country by ticking the correct response to the best of their knowledge. The questionnaire is divided into key sections: demographic, awareness and understanding, economic impacts, social impacts, risks and overall assessment. Findings from this research revealed that most of the respondents for this study (n = 79; 65.83%), were males while the remaining were females (n = 41; 34.17%). It was found out that more than half of the total number of respondents (n = 103; 85.83%) were below 30years. This was followed by (n = 15; 12.5%) of the respondents who fall between 31years to 40years. This was also followed by (n=2; 1.67%) who were 41years and above. This suggests that most of the respondents were matured, hence, they could provide relevant information about their concern on IMF loans. To the educational background of the respondents, it was found that majority (n=114; 95%) of the respondents were Tertiary graduate. This was followed by (n=5; 4.17%) who were Secondary graduate. It was also found that (n=1; 0.83%) was basic graduate. It was clear that most of the respondents were having high educational level. Other findings were that majority of the respondents (n=84; 70%) were students. However, (n=16; 13.33%) of the respondents were Employed. This was followed by (n=14; 11.67%) who were self-employed. It was also found that, (n=6; 5%) of the respondents were unemployed.

Another finding from this study was that, there is an association between loans from the International Monetary Fund (IMF) and the provision of social services exhibits a pronounced negative correlation. This observation indicates that as Ghana secures financial assistance from the IMF, there is a concomitant deterioration in the quality or accessibility of essential social services, such as healthcare and education. The adverse effects may be attributed to austerity measures or structural adjustments mandated by the IMF as prerequisites for these loans, which frequently prioritize fiscal rectitude over social expenditure.

Also, another finding from this study was that the correlation between the conditionalities associated with IMF loans and the concept of national sovereignty is similarly negative. This finding implies that the stipulations linked to IMF loans, which typically necessitate economic reforms, can significantly erode Ghana's national sovereignty. Such conditions may compel the government to enact policies that do not necessarily align with the nation's socio-economic objectives or the preferences of its populace, thereby reflecting a possible relinquishment of national autonomy in pursuit of external financial support. The paper found through the study that, correlation between IMF loans and employment rates is weak yet positive association. The elevated significance value indicates that this relationship lacks statistical significance, implying that there is inadequate evidence to assert that IMF loans exert a substantial influence on employment rates within Ghana. This situation is particularly troubling, as stable employment is essential for fostering economic development and ensuring social stability. The correlation between IMF loans and income inequality reveals a moderate positive association. Conclusively, IMF programs have been pivotal in fostering macroeconomic stability, providing debt relief, and driving structural reforms in Ghana. The intervention of IMF was vital in economy’s stabilization, correcting fiscal imbalances, and alleviating external debt pressures. These programs offered Ghana a well-coordinated policy framework, technical guidance, and financial support which helped Ghana navigate economic challenges and implement essential reforms.

6. Recommendations

Ghana should aim to reduce dependence on the IMF by harnessing local resources, expanding exports, reducing imports, strengthening partnerships with "Friends of Ghana," and shifting the economy toward production.

The government should enhance financial restructuring and implement policies that drive economic growth, reducing reliance on foreign loans.

Government spending should be carefully managed, with selective budget reductions where feasible.

To address the balance of payments issue—often a reason for seeking IMF loans—the government should prioritize increasing exports and boosting indigenous revenue.

Strong incentives are needed to foster a robust tax culture alongside necessary structural reforms.