GHANA’S POVERTY REDUCTION STRATAGIES PAPERS 2 (GPRS 2)
By: Solomon Amoako-Addo
Country Representative (ARYI)
African Regional Youth Initiative
(Civil Society Group Views)
Reference:
World Bank Statistics Report 1998-2007
UN- Millennium Development Goal
The Ministry of Finance & Economic Planning -Ghana
Food Research Institute (FHI) Ghana
Council for Scientific and Industrial Research (CSIR)
Ghana Living Standards Survey 4 (GLSS 4)
Highly Indebted Poor Country (H.I.P.C) Initiative
Demographic and Health Survey (DHS)
GHANA’S POVERTY REDUCTION STRATEGIES II
Poverty reduction has been on the minds of many developing countries as well as developmental thinkers for a long time. Many findings have been done in Ghana from the government, civil societies groups, donor agencies and ect to enable Ghana reach it target of poverty alleviation projects minimizing poverty. Per our governments commitment to the Millennium Developments Goal number 1, which states Eradicate extreme poverty and hunger, pointing to Reduce by half the proportion of people living on less than a dollar a day and Reduce by half the proportion of people who suffer from hunger.
We can all per say, the relevance of population to economic development has also engaged the minds of development thinkers for a long time, with main source of worry being the rapid growth rate in relation with the availability of resources. The Food Research Institute (FRI) , Council for Scientific and Industrial Research (CSIR) have all added to this say , and has channel it goals mainly to help Ghana reach it target agreed to the Millennium Development Goals (MDG’s). Therefore from all this source read on, I believe poverty needs not to be defined as monetary or statistical terms, but in terms of GROSS DOMESTIC PRODUCT (GDP) or per capita income of a country. Often others terms poverty as standards of living and tangible indicators such as access to safe water, reasonable clothing and shelter as well as nutritious food, health, education and transportation facilities.
According to the fourth round of the Ghana Living Standards Survey (GLSS 4) shows the proportion of people who live on less than $ 1 a day in 1998-1999 stood as 39.5 % .A recent World Bank study also suggests that the percentage of Ghanaians living below the poverty line declined from 42% in 1997 to 35% in 2003.
To reach the MDG’s 19% by 2015 poverty line, we need an annul rate of poverty reduction of about 3% instead of the current rate of 1.2% we moving on. A recent symposium I attended on Addressing Poverty in National Development provided much food for taught.
Where there seems to be a consensus among participants and contributors that much more needed to be done if Ghana is to grow economically, reduce poverty and achieve the Millennium Development Goals.
Clear it show that much have already been achieved under the GPRS I, the analysis shows the percentage of Ghanaian’s living below the poverty line was 32.2% very close to the set target of the GPRS 1 target of 32%, Most of the indicator target of the GPRS I were achieved. Ghana achieved this as a result of the government joining Highly Indebted Poor Country H.I.P.C initiative, where Ghana was given substantial amounts of debt forgiveness and debt relief under the HIPC.
Under HIPC rates of inflation dropped from 40.5% in 2000 to 14.9% in 2005.Where the Cedi stabilized against the $ dollar and appreciated against the Euro, international reserves were improved from less than one month’s imports to three months.
Ghana is now embarking on a Growth Poverty Reduction Strategy with the objective of increasing per capita income to at least $1000 by 2015 to reach the Millennium Development Goal. This can be achieve through Human Resource Development, diversifying the export base, increasing agricultural productivity, developing the private sector, financial intermediation, good governance and responsibility. The agricultural sector employs about 60% of the country’s labor force. Modernization of the agric sector appears most logical to cultivate economic growth and reduce poverty. Expectance to be achieved through research extension linkages ad enhanced agriculture manpower.
Ghana’s Poverty Reduction Strategy is predicated on continues macroeconomic stability, accelerated private sector-led growth, vigorous human resource development, good governance and civic responsibilities within a decentralized democratic government. Macroeconomic stability involves keeping the rate of inflation as low as possible, increase investment (through the interventions such as Millennium Challenge Account). A number of reviews on the implementation of the GPRS I point to a consensus that the acclaimed achievements of the strategy are not enough to reduce the incidence of poverty .It has not also radically restructured the fragile structure of Ghana’s economy.
It has been acknowledge that there were certain drawbacks the GPRS I had, where it concentration on macroeconomic stability, not growth. Also there were regional differences prior to the distribution of key outcome in the health and educational sectors. There were insufficient progress in primary school enrollment as well as geographical and gender disparities. The relevance of population to economic development has engaged the minds the minds of development thinkers for a long time, the main source of worry has been the rapid growth in relationship with the availability of resources.
The 2003 Demographic and Health Survey (DHS) show that the population of the lowest 20% exhibits more tendencies towards bigger families. Fertility rates are highest among the lowest quintiles. This may have implications for the limited resources of poorest families, if they are to take care of basics needs for education, health and nutrition of household members. This can be pointed to the posits of the theory of a vicious cycle of poverty. Interestingly, the fertility rate is declining in the higher quintiles or well-to-do families. Ghana has a population growth rate of 2.6 % and a population size, estimated at 22 million.
At present 35% of government expenditure is spent on education. Although statistics clearly the 3 Northern Regions of Ghana are not reversed into the GPRS II, where it currently stands, 69% for the Northern region, 88% for the Upper West region and 84% for Upper East region lack development and economic stability.
The National Development Planning Commission, under the Ministry of Finance and Economic Planning has delineated some of the problems in the 3 Northern regions to be addressed in along term development strategy. With the government capitation grant, where school children at least gets a meal a day and education is be prioritized free basic education, the release part of the Millennium Challenge Account into agriculture which forms the backbone of the country, the H.I.P.C initiative, government commitment to structural economic planning drawn into the national budget to suit the terms of the Millennium Challenge Account which proportional set targets at the MDG by 2015. Ghana can reach these targets of 19% to poverty line in 2015, and a third phase of the Poverty Reduction Strategy drawn and used to reach a single digit on the poverty line.
Solomon E.K.O Amoako-Addo Jr.
Country Representative Ghana
African Regional Youth Initiative
http://www.africaninitiative.org/af
Official Partner to the Forum For Global Action
http://www.forumforglobalaction.org
