The expansion of the Ghanaian economy over the years has resulted in a fall in poverty levels.
The rate of decline in poverty and extreme poverty resulting from the rapid growth is however
unequal across localities and regions. The rural localities still have poverty and extreme poverty
levels above the national average. Conversely, extreme poverty is virtually nonexistent in most
urban localities such as Accra, urban coastal and urban forest. In the same way, wide differences
in poverty and extreme poverty also exist at the regional level. The higher growth rates over the
period however, have led to a decrease in equality among the citizenry. Generally, the Gini
coefficient in 2005/06 which was above 0.4 increased marginally in 2012/13. The rural locality
and the three northern regions are the most affected. All rural localities and the three northern
regions experienced increases in inequality. The rural coastal and savannah as well as the Upper
West region saw marked increases in inequality over the 2005/06 and 2012/13 period. This
observed episode raises major concerns about the quality of growth as well as its inclusivity. In
this study, we use data from the various rounds of the GLSS, PHC and other national sources to
examine the sources and quality of this growth path over the years, and identify key policy
options that would propel Ghanaians to benefit from growth irrespective of locality, region,
gender and socio economic status via gainful employment. Our descriptive analysis show that
generally, growth over the years has been propelled by sectors with low rate of labour absorption
whilst the sectors with potential and higher rate of labour absorption have performed poorly over
the period. Outstandingly, the agriculture sector which is intrinsically connected to both rural
localities and northern regions has been associated with poor growth and lower incomes. The
computations of the marginal impact of poverty show that the impact of poverty is highest in
households whose income source is from agricultural activities. The Gini Income Elasticity also
depicts that a marginal increase in the income from agriculture would result in greater equality.
The study recommends for policy options that would significantly boost production oriented
public expenditures in the agriculture sector and the rural and northern parts of the country;
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vigorously pursue employment and income generating growth strategies that would promote
formal work arrangements and provide the essential elements associated with decent work such
as adequate social security among others; and interventions on development policy and support
to critical socio economic sectors.