The World Bank Country Director, Pierre Laporte, has revealed the adverse impact of soaring inflation in 2022 on the overall living conditions, especially for the most vulnerable segments of the population. He noted that the number of Ghanaians living in extreme poverty has risen since the previous year, with over a quarter of the population currently subsisting on less than GH¢24 per day, equivalent to less than two dollars.
The recent surge in inflation in Ghana has significantly eroded the purchasing power of affected households, primarily because their incomes have not kept pace with the rising costs due to inflation. Mr. Laporte emphasized that it is anticipated that the economic challenges the country has faced might have pushed more Ghanaians into poverty, with food insecurity worsening in the last quarter of 2022 when inflation reached its peak.
Mr. Laporte made these remarks on October 18 during an event at the World Bank Office in Accra to commemorate End Poverty Day. The program’s theme was “Delivering growth to people through better jobs in Ghana.”
The way forward
To facilitate a recovery in the current state of affairs, the government is urged to implement structural reforms that strengthen long-term growth prospects and economic stability. The focus should be on policies supporting investment and the development of human capital while enhancing resilience and preparedness, particularly in the agriculture and food systems.
The implementation of well-targeted investments is emphasized as a means to create improved employment opportunities, reduce income inequality, and enhance productivity. The significance of jobs and employment in alleviating poverty and inequality is underscored, with the added importance of empowering women, girls, and young people for a broader and lasting impact across communities and generations.
The World Bank is in the process of evolving its vision and mission in response to a series of global crises that have disrupted development progress. This transformation aims to modernize financing capabilities, delivery methods, and efficiency to promote inclusive development without compromising the well-being of vulnerable populations and to provide better quality of life and job opportunities for people.
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