When do we say someone is poor, and to what extent do we say someone is poor, is it because of what they can afford? Or what they eat or perhaps the society they reside. All of this is defined by the World Bank by using factors such as Purchasing power, Income, and Expenditure of an individual.
There is a generally accepted minimum living standard, hence if an individual falls below the set minimum living standard it implies you are living in the poverty line threshold set by the World Bank.
The Importance of Measuring Poverty
Measuring poverty is crucial for several reasons:
1. It allows the comparison of poverty levels among different households and regions within the country.
2. Enables the assessment of how poverty changes over time.
3. Provides insights into how poverty in Ghana compares to other countries.
4. Facilitates ongoing monitoring of poverty levels within the population.
5. Assists in defining effective poverty reduction strategies.
6. Provides a framework for evaluating the effectiveness of implemented poverty reduction strategies.
What is the Situation in Ghana?
According to Ghana statistics, it is estimated that approximately 3 million Ghanaians live in extreme poverty, spending less than $1.90 (GH23) per day. Of these individuals, 2 million reside in rural areas, intensifying the challenges they face.
Delving into daily expenditures, a critical question arises: Can individuals in rural areas afford to spend GH23 daily, especially considering the current economic situation in Ghana? This concern extends beyond individuals to families, raising doubts about their ability to provide this amount for the whole family, let alone for one person. Astonishingly, certain groups in urban areas also find it challenging to meet this daily expenditure.
Let’s consider a worst-case scenario – a man with a family of three, living in a rural area, depending on the minimum standard of living set at GH23. This implies that each family member has to manage GH4.6 per day. The gravity of this situation becomes even more serious when we imagine the struggles of families who cannot afford this minimum standard.
It can be concluded that there are individuals, both in rural and urban areas, who spend less than GH5 for an entire day. Such individuals become unfamiliar with the concept of three square meals a day. For them, eating once a day poses a challenge, let alone the idea of three square meals.
In conclusion, the depth of poverty in Ghana goes beyond statistics; it’s a daily struggle for survival for many. Understanding this reality is crucial for formulating effective strategies to alleviate poverty and improve the lives of those grappling with its harsh realities.
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