Professional Documents
Culture Documents
In the last two decades, sustained and inclusive growth has enabled Ghana to
reduce the poverty rate by half, according to a new World Bank poverty
assessment
A more diversified economy and better educated skilled labor has driven growth,
but growing inequality in consumption, regional disparities and a deteriorating
macroeconomic environment pose challenges
WASHINGTON, October 15, 2015 – Ghana’s strong economic growth in the past two
decades helped cut the country’s poverty rate in half, from 52.6% to 21.4% between 1991
and 2012. This is based on Ghana’s national poverty line. But according to the newly
released “Poverty Reduction in Ghana: Progress and Challenges,” report, sustained poverty
reduction requires a commitment to reducing inequality and improving access to
opportunities for all citizens.
The report examines the factors behind Ghana’s remarkable economic performance and
progress in poverty reduction, as well as the challenges to continued national growth. It also
provides a roadmap for consolidating Ghana’s middle income status.
“Ghana entered a new stage of development when it was designated a middle income
country in 2011,” says Pierella Paci, Lead Economist with the Poverty Global Practice at the
World Bank. “Their challenge is to ensure that prosperity is shared across the entire
population. A multifaceted, well-targeted and fiscally sustainable package of policies that
balances the needs of the poor with the needs of the economy will help Ghana move in the
right direction.”
Ghana’s rapid growth accelerated poverty reduction, cutting the poverty rate
from 52.6% to 21.4% between 1991 and2012. In 2012, Ghana’s poverty rate was
less than half the African average of 43%. Extreme poverty declined even more,
dropping from 37.6% in 1991 to 9.6% in 2013.
A better educated and more mobile labor force has resulted in better job
opportunities:Between 1991 and 2012, the share of the labor force without
schooling dropped from 41% to 21%. Fast-growing Accra and Ashanti gained over
2.4 million inhabitants.
The right policies can consolidate Ghana’s success in poverty reduction and
promote shared prosperity. Recommendations for continued growth in Ghana
include focusing on preventing further macroeconomic deterioration, improving the
business climate to grow the private sector, investing in infrastructure and skills
development and expanding social protection.