Presentation on theme: "GHANA’S POVERTY PROFILE 2013"— Presentation transcript:
1 GHANA’S POVERTY PROFILE 2013 Ghana Living Standards Survey,Rounds 5-626 August 2014
2 Outline of presentation IntroductionData sourcesThe standard of living measurePoverty lines and patternsPoverty covariatesSummary
3 IntroductionGhana achieved positive economic growth from 1991 and by 2007 have become a lower-middle income countryPoverty has declined in Ghana over the yearsThese declines are largely due to growthTo what extent have Ghanaian households and communities benefited from this growth?Which groups have benefited most?
4 Data sources Ghana Living Standards Survey rounds Poverty has many dimensions.The focus is on consumption povertyGhana Living Standards Survey rounds2005/06 – GLSS 52012/13 – GLSS 6Used expenditure data on:Education & HealthEmploymentHousehold AgricultureHousehold food and non-food ExpenditureNon Farm EnterprisesAssets
5 The Standard of Living Measure Involves calculating the total consumption expenditure for each household using adult equivalent scale.Based on 2,900 calories per adult equivalent per day (Recommended dietary allowance 10 edition)
6 The Standard of Living Measure Welfare=Total Household ExpenditurePrice Index * Household Size (eqsc)Total Household Expenditure:Food expenditure (actual)Own food consumptionNon food expenditure (actual)Non food (rent and user value) imputedHousing expenditurePrice Index:Regional price differentials
7 The standard of living Measure… Household size in adult equivalent scale (eqsc)The adult equivalent scale is calculated based on the composition of the household, using a calorie-based scale of age and gender specific calorie requirementsEquivalent adults recognizes, for example, that the consumption requirements of babies or young children are less than those of adults.
8 Setting Poverty lines Two lines are estimated Upper poverty line (absolute)Lower (food) poverty line (extreme)Upper poverty line estimates the overall poverty rateLower poverty line estimates extreme poverty rate
9 Setting Poverty LinesOver the period people’s tastes and preferences have change.The need to make adjustments of consumption aggregates to reflect the changes in the consumption patternthe minimum basket was updated for consumption (inclusion of the user values- mobile phones, ipad, rice cookers, computers, etc.) to reflect wellbeing and living standards in Ghana now.Using the Engel method – estimated food and non food expenditure .food – extreme poverty lineFood + non food – absolute poverty line.
10 NEW Poverty Lines (2012/13)Absolute poverty line (Upper)- Gh¢1, per year- Gh¢3.60 per dayExtreme poverty line (Lower)- Gh¢ per year- Gh¢2.17 per day
12 Poverty Rates in Ghana, 2005 - 2013 YearAbsolute PL=Gh¢1,314.00ExtremePL=Gh¢792.052012/1324.2%8.4%2005/0631.9%16.5%Poverty declines 7.7 percentage points. This followsearlier trends (1991 and 2006)By this rate Ghana has achieved the MDG 1 of halvingthe poverty rate from 1990 levels.
13 Poverty level in Ghana (2012/13) YearABSOLUTEPL=Gh¢1,314.00EXTREMEPL=Gh¢792.0520136.4 million2.2 million20067.0 million3.6 million
14 Poverty Incidence by region: PL= Gh¢1,314 Only Eastern region experienced an increase in poverty .Even though the Upper East and Upper West regions have seen big poverty decline, they are still among the poorest
15 Contribution to poverty by region The Northern Region has over the 7-year period contributed to poverty more than any other regionThe three northern regions contributes more than a third to national poverty
16 Decomposition of change (%) in poverty headcount, 2005/06 to 2012/13 ChangeShare of change due to:GrowthRedistributionNational-7.7-8.81.1Urban-1.9-2.40.5Rural-5.83.0Observed change in mean value of the standard of living (‘growth effect’)Change in inequality when mean value is unchanged (‘redistribution effect’)In Ghana Growth has remained the engine of poverty reductionIn the absence of inequality, poverty reduction would have been larger than -7.7%.
18 POVERTY COVARIATES Employment status Ownership of Assets Access to Potable WaterSanitation (Toilet facility)Electricity
19 Poverty Incidence by employment status of household head HH headed by farmers remain the poorest in GhanaHH headed by private sector workers have experienced improvement in their poverty levelsPoverty Incidence by employment status of household head
20 Percentage of households owning different durable goods has increased across all Regions Percentage of households owning fridge by Regionfridge ownership in the Northern regions has almost tripled over the years
21 Percentage of households owning TV by Region Asset ownership in the Northern regions tripled over the years
22 Percentage of households owning mobile phone by Region
23 Percentage of households having access to potable water by Region Access to potable water has increased across almost all regions.Potable water includes pipe, bottle/sachet, protected well/spring, and borehole. It excludes unprotected well and surface water.Percentage of households having access to potable water by Region
24 Percentage of households using adequate toilet facility by Region Use of flush & KVIP toilet facility has increased across all regions,but remains low in the 3 northern regionsPercentage of households using adequate toilet facility by Region
25 Households using electricity PercentHousehold access to electricity has increasedacross all regions
26 SummaryGhana has consistently been experiencing poverty reduction since the 1990s .Ghana achieved the MDG1 of halving its poverty level in 2013.24.2% of Ghanaians are poor and therefore cannot afford to spend Gh¢3.60 per day (Gh¢1, per year).8.4% of Ghanaians are extremely poor. That is putting all their expenditure together, they cannot afford to spend Gh¢2.17 per day on food (Gh¢ per year).
27 Summary cont’d Poverty has decreased in all regions except Eastern. Greater Accra recorded the lowest poverty rate.The three northern regions recorded the highest poverty rates even though there were improvements.Inequality in the distribution of welfare has increased slightly.Access to services (potable water, toilet facilities and electricity) and ownership of assets have increased across all regions