An Associate Professor in the Department of Economics at the University of Ghana, Legon, Prof Abena D. Oduro, has delivered the fourth Kwadwo Baah-Wiredu Memorial Lecture with a call on government to focus more on social intervention programs.
The lecture was delivered under the theme “From Macro to Micro, Translating Good Economic Indicators into improvements in people’s wellbeing in memory of the late Finance Minister, Kwadwo Baah Wiredu.
“Growth has not been pro-poor. In earlier periods (2005-2012), consumption expenditure per adult equivalent of the poor increased as did that of the non-poor. However, since 2012 consumption expenditure per adult equivalent registered positive growth for households at the upper end of the distribution whilst for the bottom 20 per cent of households, it declined,” she presented.
Proffering solutions on best ways macro-economic growth could reflect in the pockets of Ghanaians, Professor Abena Oduro explained the “need for more social spending and implementation of policy measures and investment in infrastructure to improve productivity in the low productivity sectors if deeper inroads are to be made in poverty reduction and to reduce inequality”.
Director of the Merian Institute for Advanced Studies in Africa explained that government’s budget is skewed towards consumption expenditure. It has difficulty achieving its target for development expenditure. A re-assessment of government spending is required and in addition, government must also consider improving its tax effort.
To this end, Prof. Abena D. Oduro proposed that funding social and development programmes through these resources reduce our dependence on and vulnerability to foreign donors and lenders; it will reduce the burden of debt and provide more fiscal space – through the reduction in interest payments – for spending on development and poverty reduction.
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