Assessment of institutional capacity for poverty reduction in Ghana

Poverty is a socio-economic problem which affects a large number of people in Ghana whether they are living in urban areas or in rural communities. However, poverty is predominantly, a rural phenomenon because of lack of job opportunities, education, wealth, health care etc, leading to low level of income among many rural dwellers. Due to low income, poor people cannot adequately lay claims on food, clothing, shelter, housing, health care, education, and the lack of capacity to participate fully in the decision- making process of their communities. Poverty is a problem because the incidence of morbidity, infant and child mortality, malnutrition, food insecurity, illiteracy and unemployment and under-employment is highest among the poor. The main purpose of the study was to investigate the capacity of selected governmental institutions both at the national and the district levels in reducing poverty levels in Ghana. It was also intended to interact with people in rural communities in order to identify the nature and causes of poverty, the effectiveness and sustainability of poverty reduction programme activities as they are implemented by governmental institutions specially the district assemblies. At the local level, the study was carried out in ten selected villages and towns in the Shama Ahanta East Metropolitan Assembly, Ahanta West District Assembly and WassaMpohor East District Assembly, as well as the three district assemblies as institutions; in the Western Region. Discussions were also held with the Department of Social Welfare, Sekondi, and the Department of Community Development, Takoradi. At the regional level, discussions were held with the Department of Community Development, Greater Accra Region, Accra, and at the national level, the Ministry of Local Government and Rural Development, Ivlinistry of Education, nd Ministry of Employment and Social Welfare. Indicators of institutional capacity such as the following were used to assess the effectiveness of the selected institutions in reducing poverty. These indicators are: o Mandates Or Legal provisions; o Institutional or organisational Structures: o Managerial approach, o Fiscal capacity; and a Programme activities Institutional ability to reduce poverty was discovered to be constrained by inadequate staffing and lack of qualified personnel. Technical knowledge in analysing policy issues relating to poverty was low among institutions at the district level. The study found out that all the institutions were facing financial constraints due to insufficient annual budgetary allocations. The district assemblies are finding it difficult to mobilise enough internal revenue to supplement the 20 percent DACF for poverty alleviation in their districts. This has led to the difficulty of implementing programme activities at the local level to reduce poverty. The way forward in reducing poverty as recommended by the study is the provision of education and training institutes which will train the youth in employable skills, creation of employment opportunities in rural communities. Access to other services such as water, health care, land, income redistribution, wealth and credit to rural people to expand their businesses. At the institutional level, it is recommended that financial, human and logistical resources for poverty alleviation must be improved upon for more effective and sustainable work. Streamlining of legal constraints for the district assemblies and other institutions to have absolute control over how to utilise funds, especially funds voted by the central government for poverty reduction, was advocated. The study concluded that all stake holders, including the poor people must take collective actions towards the alleviation of poverty. And those governmental institutions must be sufficiently equipped and strengthened with more financial, human and logistical resources for an effective and sustainable fight against poverty.

Source: KNUST