The World Bank’s Country Director, Pierre Laporte, has revealed the significant impact of soaring inflation in 2022 on the overall living standards, particularly among the most vulnerable members of society.
He pointed out that the number of Ghanaians living in extreme poverty has increased since the previous year, with more than a quarter of the population now surviving on less than GH¢24 per day, equivalent to less than two dollars.
The recent surge in inflation in Ghana has severely eroded the purchasing power of affected households, mainly because their incomes have not kept pace with the rising cost of living.
“It is expected that the current economic woes the country has endured may have pushed many more Ghanaians into poverty, and food insecurity worsened by the last quarter of 2022 when inflation was at its peak,” Mr Laporte said on October 18 at a ceremony to mark End Poverty Day at the World Bank Office in Accra.
Mr. Laporte conveyed these concerns on October 18 during an event marking End Poverty Day at the World Bank Office in Accra. The event was held under the theme “Delivering growth to people through better jobs in Ghana.”
Looking ahead, when considering the path to recovery, he emphasized the need for structural reforms to strengthen long-term growth prospects and economic stability.
He suggested that policies supporting investment and human capital development, along with efforts to enhance resilience and crisis preparedness, particularly in the fields of agriculture and food systems, were crucial to bolstering long-term growth prospects.
Mr. Laporte noted that well-targeted investments could create better jobs, reduce income inequality, and enhance productivity. He underscored that employment and job opportunities were the most effective means to alleviate poverty and inequality. Furthermore, empowering women, girls, and young people could amplify the positive impact on communities and across generations.
The World Bank, he explained, is adapting its vision and mission in response to a series of global crises that have disrupted development progress.
The institution is working on a new playbook that focuses on improving and modernizing financing capabilities, delivery models, and efficiency, among other aspects, with the goal of promoting inclusive development that doesn’t come at the expense of vulnerable populations, ultimately leading to an improved quality of life and more job opportunities for people around the world.