Accra, Ghana//-The World Bank today revealed that over a quarter of Ghanaians live on less than $2.15 per day (Ghs24.85).
While almost 700 million people around the world live today in extreme poverty – they subsist on less than $2.15 per day, the extreme poverty line. Just over half of these people live in Sub-Saharan Africa.
The World Bank Country Director for Ghana, Pierre Laporte disclosed this at an event to mark this year’s End Poverty Day in Accra.
The burden of the challenges (particularly, high inflation and low growth) has fallen on all, but especially on the vulnerable segments of the population, according to him.
“Inflation experienced over the past couple of years has eroded the purchasing power of Ghanaian households as incomes have not kept pace and it is expected that the current economic woes the country has endured may have pushed many more Ghanaians into poverty. Furthermore, food insecurity worsened by the last quarter of 2022 when inflation was at its peak”.
Mr Laporte added that in Ghana, the past year had been challenging as the economy entered difficult times just after the twin crises of the pandemic and Russia’s invasion of Ukraine.
Ghana was deeply hit as pre-existing fiscal vulnerabilities were compounded by adverse global economic conditions resulting in high inflation and steep depreciation of the cedi, while the country lost access to the international market.
The End of Poverty Day 2023 is taking place during a critical period in which extreme poverty is concentrated in places where it will be hardest to eradicate—parts of Sub-Saharan Africa, conflict-affected areas, and in rural areas.
The outlook is also grim for almost half of the world’s population, who live on less than $6.85 a day – the measure used for upper-middle-income countries, he told youth participants.
Children are more than twice as likely as adults to live in extreme poverty. They comprise more than half of those living in extreme poverty, yet their share of the total population is just 31 per cent.
“At the mid-point of the Sustainable Development Goals (SDGs), the world is off track. At current rates of progress, the world will likely not meet the global goal of ending extreme poverty by 2030, with estimates indicating nearly 600 million people will still be struggling in extreme poverty by then”, Mr Laporte said in his welcome address.
While the progress in global poverty reduction had stalled. After decades of considerable progress on poverty reduction, a period of shocks and crises has resulted in around three years of lost progress since 2020, he noted.
“It is critical to tackle poverty in all its dimensions. Countries like Ghana can improve people’s well-being by ensuring more equitable access to health, education, and basic infrastructure to provide all Ghanaians, regardless of their background, a path toward better living standards.
Inequality remains unacceptably high around the world. 2020 was a turning point, when global inequality rose for the first time in decades, as the poorest people bore the steepest costs of the pandemic”.
Mr Laporte added that income losses of the world’s poorest were twice as high as losses of the richest, emphasizing that the poorest also faced large setbacks in health and education which, if left unaddressed by policy action, will have lasting consequences for their future income prospects.
Inequalities of income, education, and opportunity are all interconnected and must be addressed together. Reducing inequalities of opportunity and incomes among individuals, populations, and regions can foster social cohesion and boost general well-being.
Addressing the current crisis
While addressing the current crisis and restoring macroeconomic stability, Ghana needs to enact structural reforms to preserve its long-term growth prospects and build economic resilience, Mr Laporte started.
He said bolstering long-term growth prospects would require policies that support investment and human capital development, as well as buttressing resilience and crisis preparedness, especially in agriculture and food systems.
“Well-targeted investments could create better jobs, lower income inequality, and boost productivity. Policymakers must intensify efforts to grow their economies while protecting the most vulnerable.
Jobs and employment are the surest way to reduce poverty and inequality. The impact is further multiplied in communities and across generations if we purposefully empower women and girls, and young people”.
While David Elmaleh and Paul Conral, both senior economists at the Bank urged the government to take pragmatic measures to speed up the country’s economic recovery processes.
The World Bank is evolving its vision and mission in response to a succession of global crises that have upended development progress.
The World Bank is transforming through the urgency of a new playbook which focuses on enhancing and modernizing our financing capacity, delivery model and efficiency of delivery among others, to drive inclusive development that does not come at the cost of the planet, leading to better quality of life and jobs for people.
The End Poverty Day which focuses on “Delivering Growth through People for Better Jobs in Ghana” reflected in much of the discussions.
The World Bank’s senior officials shared with the participants the highlights on Poverty and how the Bank is supporting Ghana toward an inclusive recovery and preparing for future crises.
Every year on October 17th, the World Bank country offices review and mark progress toward the eradication of poverty. It is an opportunity each year to spotlight the World Bank’s role in helping countries achieve their development goals, reduce poverty, and improve people’s lives.
