Evolution of poverty and welfare in Ghana in the 1990s : Achievements and challenges

Evolution of Poverty and Welfare in Ghana in the 1990s: Achievements and Challenges Africa Region Working Paper Series No. 61 October2003 Abstract T his paper traces Ghana's economic transition poverty is still a pervasive phenomena, with in the 1990s with special focus on its social Savannah region benefiting little from Ghana's welfare and poverty dynamics. Ghana returned to economic growth and poverty reduction a slow but steady rate of economic growth, even experience of the 1990s. Export farmers have seen though the world prices of its two main export the greatest gains, while food crop farmers have commodities, gold and cocoa, declined. Poverty been less fortunate. The analysis of determinants fell from just more than 50 percent to less than 40 of poverty highlight the need to diversify exports percent between 1992-1998. However, this and step up private sector growth as prerequisites decrease in poverty has not been uniform across for economic growth, employment generation and the country - most of the improvements in living poverty reduction. In addition, the paper argues standards have taken place in the southern parts of that infrastructure and access to financial and Ghana; the three northern regions, Northern, physical markets are important for poverty Upper West and Upper East Ghana, have reduction. The paper also demonstrates that experienced virtually no improvements and have investments in social sectors need to give focused even seen some increases in poverty. attention to developing a skilled labor force and post primary education, in addition to raising the This paper is a response to the renewed effort in social welfare of the poor. Ghana by many stakeholders to understand the distribution and determinants of poverty. Rural Author's Affiliation and Sponsorship Sudharshan Canagarajah, Sr. Country Economist, AFTP2, The World Bank Email: scanagarajah@worldbank.org Claus C. P