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Republic of Ghana Tackling Poverty in Northern Ghana

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Republic of Ghana Tackling Poverty in Northern Ghana Report No. 53991-GH Republic of Ghana Tackling Poverty in Northern Ghana Public Disclosure AuthorizedPublic Disclosure Authorized March 1, 2011 PREM 4/AFTAR Africa Region FOR OFFICIAL USE ONLY Public Disclosure AuthorizedPublic Disclosure Authorized Public Disclosure AuthorizedPublic Disclosure Authorized Document of the World Bank Public Disclosure AuthorizedPublic Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their offi cial duties. Its contents may not otherwise be disclosed without World Bank authorization. GHANA - GOVERNMENT FISCAL YEAR January, 1 – December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective as of March 1, 2011) Currency Unit = Ghana Cedi GH¢1 = US$0.67 US$1 = GH¢1.50 Weights and Measures Metric System ABBREVIATION AND ACRONYMS CHAG - Christian Health Association of Ghana CPP - Convention People Party CWIQ - Core Welfare Indicators Questionnaire DHS - Demographic and Health Survey GDP - Gross Domestic Product GE - General Entropy GFSP - Ghana School Feeding Program GH¢ - Ghana Cedi GLSS - Ghana Living Standard Survey GNI - Gross National Income ICA - Investment Climate Assessment IFPRI - International Food Policy Research Institute IV - Instrumental Variable KVIP - Kumasi Ventilated Improved Pit LEAP - Livelihood Empowerment Against Poverty LCGP - Low Carbon Growth Plan MDG - Millennium Development Goal MESW - Ministry of Employment and Social Welfare MOFA - Ministry of Food and Agriculture MOE - Ministry of Education MOH - Ministry of Health NDF - Northern Development Fund NDPC - National Development Planning Commission NDS - Northern Development Strategy NHIS - National Health Insurance Scheme NYEP - National Youth Employment Program PPP - Purchasing Power Parity PPVA - Participatory Poverty and Vulnerability Assessment PSU - Primary Sampling Unit PURC - Public Utilities Regulatory Commission SADA - Savannah Accelerated Development Authority SADI - Savannah Accelerated Development Initiative VAT - Value Added Tax WFP - World Food Program ii FOR OFFICIAL USE ONLY Vice President = Obiageli K. Ezekwesili Country Director = Ishac Diwan Sector Directors = Marcelo Guigale and Jamal Saghir Sector Managers = Philip English and Karen Mcconnell Brooks Task Team Leaders = Sébastien Dessus and Christopher Jackson Acknowledgments The report was prepared by a team led by Sébastien Dessus and Chris Jackson and comprising Charles Ackah, Iris Gamil Boutros, Markus Goldstein, Denis Medvedev, Andrew Norton, Kenneth Simler, William Steel, Kalandi Subbaro, and Quentin Wodon. Background Papers were prepared by Shashi Kolavalli, Afua B. Banful and Fleur Wouterse and by Tony Dogbe, Celia Marshall and David Korbo. Ayishetu Terewina helped prepare this document. Overall guidance was provided by Ishac Diwan, Katherine Bain, Antonella Bassani, Philip English and Karen Brooks. Souleymane Coulibaly, Margaret Grosh, Ramatu Mahama, Truman Packard and Lucian Pop peer reviewed this report. Comments, inputs and suggestions were also received from Louise Cord, Harold Coulombe, Andrew Dabalen, Gladys Ghartey, John Hubbard, Alhassan Idrissu, Qaiser Khan, Maureen Lewis, Julianna Lindsey, John Richardson, Essie Yamoah, and Elizabeth White. The team is also thankful to the participants of the senior policy dialogue on poverty and regional inequalities organized in August 2010 in Accra. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Republic of Ghana: Tackling Poverty in Northern Ghana Table of Content EXECUTIVE SUMMARY ..............................................................................................................VII 1. INTRODUCTION ...................................................................................................................... 1 2. GHANA’S GEOGRAPHICAL DISPARITIES .......................................................................13 A. THE PHOTOGRAPHY OF GHANA’S POVERTY ............................................................................13 B. GEOGRAPHICAL POVERTY PROFILES .......................................................................................18 C. THE EVOLUTION OF SPATIAL DISPARITIES OVER TIME: ENDOWMENTS VS. RETURNS ............26 D. THE CASE FOR GEOGRAPHICAL INTERVENTIONS ....................................................................31 3. POVERTY ALLEVIATION OPPORTUNITIES IN NORTHERN GHANA .......................35 A. INTRODUCTION........................................................................................................................35 B. CONTEMPORARY LIVELIHOODS IN NORTHERN GHANA ...........................................................38 C. A CLOSER LOOK AT LIVELIHOODS IN NORTHERN GHANA .......................................................46 D. OPPORTUNITIES FOR IMPROVED LIVELIHOODS ........................................................................52 4. INTERNAL MIGRATION AND POVERTY .........................................................................59 A. INTRODUCTION........................................................................................................................59 B. THE PROFILE OF GHANAIAN MIGRANTS ..................................................................................60 C. MIGRATION, REMITTANCES AND POVERTY .............................................................................67 D. MIGRATION AND ROAD NETWORKS ........................................................................................78 5. IMPROVING SOCIAL PROTECTION INTERVENTIONS IN NORTHERN GHANA....82 A. INTRODUCTION........................................................................................................................82 B. THE SOCIAL PROTECTION ARCHITECTURE IN GHANA .............................................................83 C. OPTIONS FOR BETTER SOCIAL PROTECTION IN NORTHERN GHANA ........................................92 List of Tables: Table 1-1: Basic Poverty Indicators, 1992-2006 ................................................................................... 1 Table 1-2: Ghana’s Progress towards the Millennium Development Goals ........................................... 3 Table 1-3: The Growing North-South Poverty Divide, 1992-2006 ........................................................ 7 Table 1-4: Gender and the North-South Poverty Divide, 1992-2006 ..................................................... 9 Table 1-5: SADA vs. non-SADA Poverty in 2006 .............................................................................. 11 Table 2-1: Characteristic’s of the Poor, SADA vs. non-SADA, 2006 ................................................. 19 Table 2-2: Characteristics of the Poor by Gender, SADA vs. non-SADA, 2006 ................................. 21 Table 2-3: Determinants of per capita consumption, SADA and non-SADA, 2006 ............................ 23 Table 2-4: Determinants of per capita consumption, Gender, SADA and non-SADA, 2006 ............... 25 Table 2-5: North-South Convergence in Education and Health Outcomes, 1993-2008 ....................... 27 Table 2-6: Benefit Incidence Analysis: Public Education, 2003 .......................................................... 28 Table 2-7: Benefit Incidence Analysis: Public Health, 1992-2006 ...................................................... 28 Table 2-8: Estimated North-South Differences in Returns, 1992-2006 ............................................... 29 iv Table 2-9: North-South Poverty Convergence Measures..................................................................... 30 Table 3-1: Field Sites for the PPVA .................................................................................................... 36 Table 3-2: Labor Force Shares across Occupations, 1991 – 2005 ....................................................... 41 Table 3-3: Livelihood Strategies of Households in Northern Ghana ................................................... 44 Table 3-4: Determinants of Northern Households Graduating to Market-based Farming .................... 52 Table 3-5: Average Yields for Key Food Crops, 2007 ........................................................................ 53 Table 4-1: Regions of Origin and Destination for Internal Migrants in Ghana .................................... 62 Table 4-2: Gender, Age, and Educational Attainment of Migrants vs. Non-Migrants ......................... 65 Table 4-3: Main Reason for Migration by Age and Gender ................................................................ 71 Table 4-4: Occupational Categories for Migrants vs. non-Migrants .................................................... 73 Table 4-5: Estimated Impact of Migration on Sending Household’s Welfare ...................................... 75 Table 4-6: Simulated Impact of Migration on Poverty Headcount ...................................................... 75 Table 4-7: Goods’ Travel Time from North to South .......................................................................... 78 Table 5-1: Ghana School Feeding Program Beneficiaries 2008 .......................................................... 89 Table 5-2: Share of the Benefits from Various Programs Accruing to the Poor .................................. 90 List of Figures: Figure 1-1: Ghana Ranks among the Top Poverty Reduction Performers ............................................. 4 Figure 1-2: Ghana’s Poverty Reduction Combined
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