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Poverty Indices PREFACE AND ACKNOWLEDGEMENT This publication presents the latest analysis of the living conditions of Ghanaian households and the poverty profile based on the sixth round of the Ghana Living Standards Survey (GLSS6) conducted in 2012/2013. Five rounds of the Ghana Living Standards Survey have been conducted in the past (1987/88, 1988/89, 1991/92, 1998/99 and 2005/06) each covering a nationally representative sample of households interviewed over a period of twelve months. The report covers three different dimensions of poverty namely: consumption poverty, lack of access to assets and services and human development. The report analyzes macroeconomic developments in the country since 2005, focusing on Growth in Gross Domestic Product (GDP), trends in inflation, balance of payments and public expenditures. It also discusses social protection interventions aimed at reducing poverty and programmes being implemented towards the attainment of the Millennium Development Goals (MDGs). As a result of the rebasing of the Consumer Price Index (CPI) basket in 2012, the introduction of new consumer items onto the Ghanaian market and changes in household consumption, the report presents the poverty profile of households in 2012/2013 and only attempts to compare the current levels of poverty with those measured in round five of the GLSS. The Ghana Statistical Service wishes to acknowledge the contribution of the Government of Ghana, the UK Department for International Development (UK-DFID), the World Bank, UNICEF, UNFPA and International Labour Organization (ILO), who provided both technical and financial support towards the successful implementation of the GLSS6 project. The Service would also like to acknowledge the invaluable contributions of Xiao Xye and Vasco Molini (both consultants from the World Bank), Lynn Henderson of DFID, Kofi Agyeman-Duah, Anthony Amuzu, Abena Osei-Akoto, Jacqueline Anum, Samilia Mintah, Yaw Misefa, Appiah Kusi-Boateng, Anthony Krakah, Asuo Afram, Francis Bright Mensah and Patrick Adjovor all of the Statistical Service who worked tirelessly with the consultants to produce this report under the overall guidance and supervision of Dr. Philomena Nyarko, the Government Statistician. DR. PHILOMENA NYARKO GOVERNMENT STATISTICIAN August 2014 ii TABLE OF CONTENT PREFACE AND ACKNOWLEDGEMENT ......................................................................... ii LIST OF TABLES ................................................................................................................... v LIST OF FIGURES ............................................................................................................... vii EXECUTIVE SUMMARY .................................................................................................... ix CHAPTER ONE: THE ECONOMIC CONTEXT .............................................................. 1 1.1 Gross Domestic Product (GDP), 2005-2013 ............................................................... 1 1.2 Trends in inflation (2005-2013) .................................................................................. 3 1.3 Balance of payments (2005-2013) .............................................................................. 3 1.4 Public expenditures (2005-2013) ................................................................................ 4 1.5 Social interventions ..................................................................................................... 4 1.6 Summary ..................................................................................................................... 4 CHAPTER TWO: CONSUMPTION POVERTY, METHODOLOGY AND MEASUREMENT................................................................................ 5 2.1 Introduction ................................................................................................................. 5 2.2 Data sources ................................................................................................................ 5 2.3 Construction of the standard of living measure .......................................................... 5 2.4 Rebasing of the standard of living measurement ........................................................ 6 2.5 Rebasing the consumption basket and construction of the Poverty Line .................... 7 2.6 Summary ..................................................................................................................... 7 CHAPTER THREE: PROFILE OF CONSUMPTION POVERTY ................................. 9 3.1 Introduction ................................................................................................................. 9 3.2 Poverty incidence and poverty gap ............................................................................. 9 3.3 Extreme Poverty in Ghana ........................................................................................ 12 3.4 Poverty in Administrative Regions ........................................................................... 13 3.5 Summary ................................................................................................................... 17 CHAPTER FOUR: COVARIATE ANALYSIS ................................................................. 18 4.1 Decomposition of Poverty ......................................................................................... 18 4.2 Poverty by economic activity and gender of household head ................................... 18 4.3 Poverty and educational level of household head ..................................................... 20 4.4 Welfare distribution (Inequality analysis) in Ghana ................................................. 21 4.5 Growth incidence in Ghana: Is Ghana’s economic growth pro-poor? ...................... 22 4.6 Summary ................................................................................................................... 25 CHAPTER FIVE: HOUSEHOLD ASSETS ...................................................................... 26 5.1 Introduction ............................................................................................................... 26 5.2 Asset Ownership ....................................................................................................... 26 5.3 Summary ................................................................................................................... 30 CHAPTER SIX: ACCESS TO SERVICES ....................................................................... 31 6.1 Introduction ............................................................................................................... 31 6.2 Household access to utilities and sanitation facilities ............................................... 31 6.3 Summary ................................................................................................................... 33 CHAPTER SEVEN: HUMAN DEVELOPMENT ............................................................ 34 7.1 Introduction ............................................................................................................... 34 7.2 Access to health services ........................................................................................... 34 7.3 Access to education ................................................................................................... 37 7.4 Summary ................................................................................................................... 43 iii CHAPTER EIGHT: CONCLUSION ................................................................................. 44 Appendix 1: Consumption Poverty Indices ..................................................................... 46 Appendix 2: Household Assets ........................................................................................ 51 Appendix 3: Household Access To Services ................................................................... 55 Appendix 4: Human Development Tables ...................................................................... 60 Appendix 5: Consumption Poverty Using 2005/6 Poverty Lines ................................... 67 Appendix 6: Macroeconomics Indicators ........................................................................ 69 Appendix 7: Glss Sample Design .................................................................................... 70 Appendix 8: Construction Of The Standard Of Living Measure .................................... 71 Appendix 9: Poverty Indices ........................................................................................... 76 iv LIST OF TABLES Table 2.1: Regional cost of living indices ............................................................................. 6 Table 3.1: Poverty incidence and Poverty gap by locality (%), 2005/06 - 2012/13 (Poverty line=GH¢1,314) ................................................................................... 11 Table 3.2: Extreme Poverty Incidence and Poverty Gap by locality (%),2005/06-2012/13 (Poverty line=GH¢792.05) ................................................................................. 13 Table 3.3: Poverty incidence and poverty gap by region (%), 2005/06 -2012/13 (Poverty line=GH¢1,314) ................................................................................... 14 Table 3.4: Extreme Poverty incidence and poverty gap by region (%), 2005/06 - 2012/13 (Poverty line= GH¢792.05) ................................................................................ 15 Table 4.1: Decomposition
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