11

POVERTYPOVERTYAND SOCIAL IMPACT ANALYSIS AND SOCIAL IMPACT ANALYSIS

:GHANA:GHANA’’S EXPERIENCES EXPERIENCE

PREPARED BY PREPARED BY E.ODOTEI, NDPCE.ODOTEI, NDPC

22

OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATIONnn BACKGROUND TO GHANABACKGROUND TO GHANA’’S POVERTY REDUCTION EFFORTSS POVERTY REDUCTION EFFORTSnn OVERVIEW OF GPRS IOVERVIEW OF GPRS I

nn HIGHLIGHTS OF ACHIEVEMENTS OF GPRS IHIGHLIGHTS OF ACHIEVEMENTS OF GPRS I

nn KEY CONCLUSIONS FROM GPRS IKEY CONCLUSIONS FROM GPRS I

nn OVERVIEW OF GPRS IIOVERVIEW OF GPRS II

nn POLICY IMPLEMENTATION ASSESSMENT MECHANISMSPOLICY IMPLEMENTATION ASSESSMENT MECHANISMS

nn POVERTY AND SOCIAL IMPACT STUDIESPOVERTY AND SOCIAL IMPACT STUDIES

I. PSIA Process OverviewI. PSIA Process Overview

II. Summary Table of NDPCII. Summary Table of NDPC’’s Process Reviews Process Review

III. Summary Table of PSIA results/outcomes.III. Summary Table of PSIA results/outcomes.

33

BACKGROUNDBACKGROUNDnn Since 2002 GOG has implemented Since 2002 GOG has implemented

the GPRS (I&II) as the national the GPRS (I&II) as the national development policy framework development policy framework

FFGPRS I (2002GPRS I (2002--2005), emphasized 2005), emphasized macroeconomic stability and macroeconomic stability and poverty poverty reduction programs and projectsreduction programs and projects

44

BACKGROUND (contBACKGROUND (cont’’d)d)

With the attainment of relative macroeconomic stability and modest economic growth under GPRS I, the emphasis of GPRS II (2006 – 2009) is on the implementation of growth-inducing policies and programmes which have the potential to support wealth creation and sustainable poverty reduction.

55

What is the GPRSWhat is the GPRS

nn The GPRS is GhanaThe GPRS is Ghana’’s version of the s version of the generation of the PRSP paradigm generation of the PRSP paradigm and stands for Ghana Poverty and stands for Ghana Poverty Reduction StrategyReduction Strategy-- national national agenda. agenda.

nn It is GhanaIt is Ghana’’s response to addressing s response to addressing the issues of poverty and sociothe issues of poverty and socio--economic development.economic development.

66

What is the GPRS (contWhat is the GPRS (cont’’d)?d)?

n The GPRS is a comprehensive set of policies to support growth and poverty reduction over a specified timeline.

nn Provides a clear understanding of Provides a clear understanding of poverty and factors that bring about poverty and factors that bring about poverty poverty

77

What is the GPRS? (What is the GPRS? (contdcontd))

nn Well thoughtWell thought--out measures that will out measures that will help maintain the prices of goods help maintain the prices of goods and services that we consume stableand services that we consume stable

nn Information on actions that will Information on actions that will result in improvement in the social result in improvement in the social and economic lives of Ghanaiansand economic lives of Ghanaians

88

What is the GPRS? (What is the GPRS? (contdcontd))

nn Information on the cost of actions to Information on the cost of actions to be undertaken, who will do what and be undertaken, who will do what and at what time.at what time.

nn Has a well outlined plan for Has a well outlined plan for monitoring and evaluation of itmonitoring and evaluation of it’’s s implementation implementation

99

Why Why -- the GPRSthe GPRSnn GPRS is to develop new and GPRS is to develop new and

comprehensive policies (specifically comprehensive policies (specifically targeted) in support of poverty targeted) in support of poverty reduction and growthreduction and growth

nn to strengthen current policies and to strengthen current policies and activitiesactivities

nn Based on the conviction to create Based on the conviction to create wealth for the benefit of all wealth for the benefit of all GhanaiansGhanaians

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GOAL OF GPRS I

TO ACHIEVE SUSTAINABLE EQUITABLE TO ACHIEVE SUSTAINABLE EQUITABLE GROWTH, GROWTH,

ACCELERATED POVERTY REDUCTION ACCELERATED POVERTY REDUCTION AND THE PROTECTION OF THE AND THE PROTECTION OF THE

VULNERABLE AND EXCLUDED WITHIN VULNERABLE AND EXCLUDED WITHIN A DECENTRALIZED DEMOCRATIC A DECENTRALIZED DEMOCRATIC

ENVIRONMENTENVIRONMENT

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Thematic focus of GPRS IThematic focus of GPRS I

nn MacroMacro-- economic stabilityeconomic stabilitynn Production and Gainful EmploymentProduction and Gainful Employmentnn Human Resource Devpt & Provision Human Resource Devpt & Provision

of Basic Servicesof Basic Servicesnn Good GovernanceGood Governancenn Special Programs for the Vulnerable Special Programs for the Vulnerable

& Excluded & Excluded

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GOAL OF GPRS IIGOAL OF GPRS II

DOUBLING THE SIZE OF THE ECONOMY AND BECOMIMG A MIDDLE INCOME

COUNTRY WITH PER CAPITA INCOME OF AT LEAST US$1,000 WITHIN A

DECADE (BY 2015) WITHIN A DECENTRALIZED , DEMOCRATIC

ENVIRONMENT

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FDOUBLING THE SIZE OF THE ECONOMYAND BECOMIMG A MIDDLE INCOME COUNTRY BY 2015

1. NATIONAL GOAL:

FAGRICULTURE-LED GROWTH STRATEGY¦ Agriculture to lead growth in the

medium-term (2006-2009)

¦ Industry (Agro-industrial) to lead growth in a long-term

¦ Other growth points include:Tourism, ICT, MiningMusic and Films,

2. STRATEGICDIRECTION:

FOVER ALL GDP GROWTH IS TARGETED AT 6 -8% ANNUALLY BETWEEN 2006-2009Agriculture to growth at about 6%

3. OVERALL GDP GROWTH RATE:

STRATEGIC FRAMEWORK FOR GPRS IISTRATEGIC FRAMEWORK FOR GPRS II

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FOCUS OF GPRS IIFOCUS OF GPRS II

Having achieved relative macroeconomic Having achieved relative macroeconomic stability and modest growth under GPRS stability and modest growth under GPRS I, the direction of GPRS II is to accelerate I, the direction of GPRS II is to accelerate economic growth and poverty reduction economic growth and poverty reduction through private sectorthrough private sector--led wealth led wealth creation and employmentcreation and employment--generationgeneration

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POLICY INTERVENTIONSPOLICY INTERVENTIONS

THE THEMATIC AREAS:THE THEMATIC AREAS:I.I. PRIVATE SECTOR COMPETITIVENESSPRIVATE SECTOR COMPETITIVENESS

II. HUMAN RESOURCE DEVELOPMENTII. HUMAN RESOURCE DEVELOPMENT

III. GOOD GOVERNANCE AND CIVIL III. GOOD GOVERNANCE AND CIVIL RESPONSIBILITYRESPONSIBILITY

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Implementation Performance AssessmentImplementation Performance Assessment

Three main mechanism:Three main mechanism:nn Annual monitoring through Annual Annual monitoring through Annual

Progress Report( APR);Progress Report( APR);

nn Participatory M &E ( citizens Participatory M &E ( citizens assessment);assessment);

nn Poverty and social impact studies. Poverty and social impact studies.

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POVERTY AND SOCIAL IMPACT STUDIESPOVERTY AND SOCIAL IMPACT STUDIES

nn Ghana in 2003 under the initiative of Ghana in 2003 under the initiative of the World Bank and led by the the World Bank and led by the National Development Planning National Development Planning Commission identified 16 research Commission identified 16 research areas from Mediumareas from Medium--term priorities & term priorities & APR findings out of which 5 was APR findings out of which 5 was short listed.short listed.

nn All studies conducted were ExAll studies conducted were Ex--Anti Anti assessment.assessment.

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SHORT LIST OF PSIA STUDY AREASSHORT LIST OF PSIA STUDY AREAS

nn Economic Transformation of the Economic Transformation of the Agricultural sector;Agricultural sector;

nn Tackling Vulnerability and Exclusion Tackling Vulnerability and Exclusion In Ghana;In Ghana;

nn Enhancing ProEnhancing Pro--poor Decentralization;poor Decentralization;nn Two energy reform Policies.Two energy reform Policies.

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SHORT LIST OF PSIAs ( contSHORT LIST OF PSIAs ( cont’’d)d)

Energy Reforms cover:Energy Reforms cover:nn Life Line electricity Tariffs and the Life Line electricity Tariffs and the

poor;poor;nn The distributional impact and effects The distributional impact and effects

of Ghanaof Ghana’’s Petroleum pricing policy s Petroleum pricing policy and the poor.and the poor.

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PSIA PROCESS OVERVIEWPSIA PROCESS OVERVIEW

In all 20 distinct steps were identified In all 20 distinct steps were identified and employed:and employed:

nn Identification and short listing of Identification and short listing of research/study areas;research/study areas;

nn Sourcing for funding;Sourcing for funding;nn Establishment of technical Establishment of technical

management and review management and review Committees;Committees;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)nn Identification of inIdentification of in--country pool of country pool of

specialists to support quality control;specialists to support quality control;nn Development of TOR for research Development of TOR for research

teams;teams;nn Call for expression of interest (Eol) in Call for expression of interest (Eol) in

line with national procurement line with national procurement procedures;procedures;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)

nn Opening of Eol by Technical Committee in Opening of Eol by Technical Committee in front of bidders to ensure transparency front of bidders to ensure transparency and compliance with agreed criteria;and compliance with agreed criteria;

nn ShortShort--listing of bids according to criteria listing of bids according to criteria agreed between NDPC, DPs and Technical agreed between NDPC, DPs and Technical Committee members collated and Committee members collated and circulated;circulated;

nn Submission of technical proposal by shortSubmission of technical proposal by short--listed bidderslisted bidders-- leadlead--time of about two time of about two weeks between shortweeks between short--listing and listing and submission of proposals; submission of proposals;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)

nn Sensitization session with shortSensitization session with short--listed bidders to clarifylisted bidders to clarify-- TOR, TOR, expectations of team composition, expectations of team composition, PSIA process, communications issues PSIA process, communications issues and clarification of milestones and and clarification of milestones and deliverables; deliverables;

nn Selection of preferred bidders Selection of preferred bidders (teams) using agreed criteria set by (teams) using agreed criteria set by NDPC and DPs. TC members given NDPC and DPs. TC members given between4between4--5 days to comment;5 days to comment;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)

nn Formal presentation of Technical Bids Formal presentation of Technical Bids and selection of wining bids in line and selection of wining bids in line with agreed criteria;with agreed criteria;

nn Contract drawn up NDPC and funding Contract drawn up NDPC and funding agencies;agencies;

nn Attachment of NDPC /technical staff Attachment of NDPC /technical staff to research teams to maintain to research teams to maintain institutional memory and transfer of institutional memory and transfer of expertise; expertise;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)

nn Reporting milestone for PSIA process Reporting milestone for PSIA process clearly identified and agreedclearly identified and agreed--submission of concept note, interim submission of concept note, interim report, preliminary findings, draft report, preliminary findings, draft report, stakeholder consultations and report, stakeholder consultations and the final report; the final report;

nn Review of dissemination plan as Review of dissemination plan as outlined by respective research outlined by respective research teams as part of contract; teams as part of contract;

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PSIA PROCESS OVERVIEW (contPSIA PROCESS OVERVIEW (cont’’d)d)nn Workshop between PSIA team, TC and Workshop between PSIA team, TC and

NDPC early in PSIA process to identify NDPC early in PSIA process to identify action plan for ensuring findings fully fed action plan for ensuring findings fully fed into GPRS revision process;into GPRS revision process;

nn Preparation of policy by PSIA teams in line Preparation of policy by PSIA teams in line with agreed template introduce as part of with agreed template introduce as part of the reporting requirements;the reporting requirements;

nn Summary of findings of all PSIAs collated Summary of findings of all PSIAs collated in one document and fed into APR. in one document and fed into APR.

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Summary table of process reviewSummary table of process reviewNDPC Review of PSIA Process

Improve consistency in approach to managing each individual PSIA process.

Strengthens ownership of PSIA process by improving communication between different stakeholders in PSIA process.

Continue with process – Initial ToRs drafted by NDPC/lead MDA after 1st meeting of TC. Use agreed template for drawing up PSIA ToRs.Set up email discussion group for TC to communicate between each other

ToRs developed by TC from draft drawn up by NDPC inConsultation via meetings and email

Supports NDPC in providing timely and focused feedback thereby enhancing quality and keeping PSIA on track.Contributes to institution-wide process of embedding NDPC into a broader network of national researchers and policy analysts.

Pool of Backstopping in-country specialists identified to support PSIA quality control on a call down basis and cutting across all PSIAsSpecialist needs include: Social policy analyst; qualitative/quantitative research methods; macro-economic analysis; participatory research processes

Not done in this current round

Strength motivation of TC membership and tighten up quality control mechanisms of PSIA process.

Chair transferred to lead MDA for the PSIA & co-ordinated by NDPCClear briefing by NDPC of what membership of TC will entail – tasks, responsibilities and time burdenClarification of incentives for TC members

Technical Committees (TC) set up for each PSIA to oversee PSIA process. Chaired by NDPC

Enhance NDPC capacity to manage PSIA process and increase consistency between different PSIAs.

Funds for PSIA studies pooled and managed by NDPC

PSIA studies funded by individual donors through MDBS group

PSIA agenda is more clearly driven by demands of GOG and a transparent baseline of expressed demand by MDAs at start of process.

Keep workshop - broaden participationParticipants to include MDAs and poverty monitoring groups.

Workshop to prioritise PSIA themes by members of Cross Sectoral Planning Groups (CSPG).

Ensure evidence available to fed into revision of GPRS 2005

Initiated and led by NDPC –themes identified from Medium term GPRS priorities & APR findings

WB initiative – based on 16 research areas emerging from GPRS

What difference will it make?Intended changes for next round of PSIA(based on lessons learnt)

Steps in Current PSIA process

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Enhance ownership of TC over PSIA processCriteria revised by TC on the basis of a) lessons learnt from current round and demands of new ToRs.Modification of selection process as below.Increase time available for TC members to comment on proposals to 7 – 10 days.

Selection of preferred team using agreed criteria set by NDPC and development partners. Comments from Individual TC members collated and circulated by NDPC before selection meeting. TC members given on average 4-5 days to comment.

Better informed bidders will lead to better quality bids.

Public meeting for all short listed bidders in the overall PSIA process and co-ordinated by NDPC. Aims•Clarification of ToRs•Expectations of team composition•Explanation of PSIA process•Improve focus on communication of PSIA outputs at much earlier stages in life of research•Clarification of milestones and deliverables

Not done in current round. Although exposure workshop conducted by IDS for teams interested in “Tackling vulnerability and Social exclusion” PSIA was a useful exercise.

Should lead to better quality bids.Longer lead-time for Short listed teams to develop Technical response. Consider 3 –4 weeks.

On average 2 weeks between short listing and submission of technical proposal

Process to remain the same.Criteria for selection of shortlist based on current round and revised by TC in tandem with development of ToRs.Template for assessing EOI prepared and circulated to TC.

Short-listing according to criteria agreed between NDPC and Development partners. Comments from TC members collated and circulated by NDPC.

Process to remain the same.Opening of EoI done in front of committee to ensure transparency and compliance with agreed criteria

Process to remain the same Calls for Expression of Interest (EoI) in national news papers

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Increasing time available for PSIA from average of 4 months to 6 months increases opportunities for engendering policy dialogue during life of PSIA.Timeframe to reflect both information needs and deadline requirements.

Earlier lead-in time for next round of PSIAs to give TC opportunity to consider timeframe and methodological needs of individual PSIAs without compromising need to meet governmental deadline of GPRS revsion by March 2005.

Different timeframes for each of the PSIAs. Some had longer research time. Satisfying HIPC triggers over-rode some consideration of quality.

Strengthen in-house capacity to carry out evidence based policy research.Enhance capacity of NDPC to quality control and supervise policy research processesIncrease likelihood that methodological lessons learnt during PSIA process are embedded within the institutional memory of NDPC and fed into subsequent research processes.

At least one junior staff member of NDPC attached to a PSIA team during research process as active participant in research process

Not done during current round.

Streamline contractual process.Setting milestones against deliverables with agreed minimum standards increases TC control over process and supports better quality.

Contracts standardised between PSIAs and co-ordinated by NDPC.Agreed minimum standards inserted into payment schedule.

Contracts drawn-up by donors and NDPC. Some minor differences between contracts. Payment by meeting of output milestones not necessarily linked to

Should replace the production of the concept note after the team has been selected therefore freeing time to focus on research process.Support increased ownership of process by partner organisations

Formal Presentation of Technical bids to TCDecision on who to select taken on same day.Criteria to assess presentation agreed and documented prior to presentations.Selection panel chaired by lead MDA in PSIA process.

Not done in Current round

Enhance ownership of TC over PSIA processCriteria revised by TC on the basis of a) lessons learnt from current round and demands of new ToRs.Modification of selection process as below.Increase time available for TC members to comment on proposals to 7 – 10 days.

Selection of preferred team using agreed criteria set by NDPC and development partners. Comments from Individual TC members collated and circulated by NDPC before selection meeting. TC members given on average 4-5 days to comment.

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Function of NDPC to provide overall summaries of PSIA for next round of PSIAs.

Summary of findings of all PSIAs collated in one document by WBSummaries of PSIA fed into APR.

Strengthen NDPC capacity to produce in-house policy briefs.

Policy brief template of NDPC circulated to PSIA teams at start of Process. One policy brief summarising key policy messages and recommendations to be a reporting requirement within ToR.Other policy briefs to be identified according to need to inform policy dialogue. NDPC to consider taking lead on production.

Policy briefs prepared by PSIA teams in part using agreed template. Introduced as reporting requirement as an addition to ToR

Provides a focused and systematic process for a) identifying roles and responsibilities and b) increasing motivation for using PSIA findings in policy revision.

Workshop between PSIA team, TC and NDPC early in PSIA process to identify action plan for ensuring findings fully fed into GPRS revision process. Chaired by lead MDA in PSIA process.

Not done in current round.

Transfer ownership to NDPC for the outputs of the research.Strengthen linkages between PSIA and other reporting requirements of NDPC

Dissemenation process to be co-ordinated by NDPC and embedded in process for revising the GPRS.Focus on communication of PSIA outputs in line with overall GPRS communication strategy.

Dissemination process for the PSIA process identified by the individual PSIA teams as part of contractual ToR obligations.

Should help team a)Provide more focused policy messages b)Engender more participatory policy dialogue between govt, civil society and private sector during research process.Support NDPC identify any issues within PSIA process before become major problems.

More focused technical proposal to replace concept note. Involve backstopping pool of experts in commenting at different stages in the research process. Stages as before accept first milestone:•Clarification of research methodology – based on literature review and early stakeholder consultations together with revised plan for engendering participatory policy dialogue - 3 weeks after contract starts.

Reporting Milestones for PSIA Process:•Concept note 2 weeks after contract stated•Interim report – midpoint •Preliminary findings•Draft report•Final report after stakeholder consultations

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Summary Table: Poverty and Social Impact Analysis (PSIA) in Ghana

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ShortShort--Term: The Term: The total cost of the total cost of the lifeline tariff is not lifeline tariff is not significant at significant at present (less than present (less than 1% of revenues) 1% of revenues) and therefore can and therefore can serve an important serve an important purpose in the face purpose in the face of tariff increases of tariff increases over the shortover the short--term. term.

The Ministry of The Ministry of Finance should, Finance should, however, commit to however, commit to making payments making payments on this subsidy in a on this subsidy in a timely manner. timely manner.

Rather than spending money Rather than spending money on better targeting the on better targeting the lifeline through schemes that lifeline through schemes that are likely to be are likely to be administratively difficult to administratively difficult to implement, the policy focus implement, the policy focus should be on educating should be on educating consumers on basic consumers on basic conservation techniques to conservation techniques to fall within the lifeline. Such fall within the lifeline. Such efforts should be in a form efforts should be in a form that is easy for less literate that is easy for less literate

The broader picture: The broader picture: Only 1% of the rural Only 1% of the rural poor have access to poor have access to electricity. electricity. However, about However, about 20% of those with 20% of those with electricity in rural electricity in rural areas fall under the areas fall under the poverty line.poverty line.

Electricity access Electricity access has increased has increased significantly in significantly in Ghana, jumping to Ghana, jumping to cover half the cover half the population in 2003. population in 2003. This means although This means although electricity prices in electricity prices in Ghana are lower Ghana are lower than in than in neighbouringneighbouringcountries, it will face countries, it will face more constraints in more constraints in the next five years the next five years in terms of keeping in terms of keeping prices affordable for prices affordable for newer and more newer and more rural consumers.rural consumers.

Phase I (not meant Phase I (not meant to be to be nationally nationally representativerepresentative))

1. New analysis of 1. New analysis of existing data existing data like the like the GLSS4, GLSS4, preliminary preliminary results from results from CWIQ 2003, CWIQ 2003, time series time series analysis of analysis of utility records.utility records.

2. 2. FGDsFGDs, key , key informant informant interviews interviews with specific with specific types of types of consumers consumers andand

3. Limited 3. Limited quantitative quantitative survey work. survey work. The total The total sample size sample size for the for the

Energy Sector Energy Sector ReformsReformsObjectivesObjectives1. Effectiveness and 1. Effectiveness and

sustainability sustainability of the lifeline of the lifeline tariff in tariff in protecting the protecting the poor from poor from recent tariff recent tariff increases.increases.

2. Partial evaluation 2. Partial evaluation of impact of of impact of recent tariff recent tariff increases on increases on poor electricity poor electricity

consumersconsumers

Policy Implications Policy Implications

and Optionsand Options

Principal Conclusions Principal Conclusions Methods Used, Methods Used,

Data CollectionData Collection

Study/Policy Being Study/Policy Being

AnalyzedAnalyzed

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Phase 2 of the PSIA Phase 2 of the PSIA should follow up on should follow up on one specific group one specific group that has been that has been identified as being identified as being more affected by more affected by others by tariff others by tariff increasesincreases-- the small the small commercial commercial businesses as those businesses as those mostly involved in mostly involved in illegal connections.illegal connections.

Nationally Nationally representative data representative data on incomes and on incomes and electricity electricity consumption patterns consumption patterns of different consumer of different consumer groups (phase 2) will groups (phase 2) will constitute a constitute a necessary next step necessary next step to identify the to identify the potential for crosspotential for cross--subsidization within subsidization within the electricity sector, the electricity sector, and to identify with and to identify with precision at what precision at what point electricity tariffs point electricity tariffs will become will become unaffordable to new unaffordable to new

Nonetheless, analysis Nonetheless, analysis of utility data over of utility data over the period of tariff the period of tariff increases failed to increases failed to demonstrate any demonstrate any significant or significant or generalized reaction generalized reaction in terms of reduced in terms of reduced consumptionconsumption--reactions one would reactions one would normally see when normally see when prices become prices become unaffordable.unaffordable.

However, between However, between 8% to 20% of 8% to 20% of electricity consumers electricity consumers exhibit some signs of exhibit some signs of vulnerability (selling vulnerability (selling assets etc to pay for assets etc to pay for electricity).electricity).

Many consumers who Many consumers who could take advantage could take advantage of the lifeline fail to of the lifeline fail to do so because of lack do so because of lack of knowledge about of knowledge about the lifeline the lifeline (compounded by lack (compounded by lack of literacy among a of literacy among a growing rural growing rural

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LongLong--Term: In Term: In conjunction with conjunction with Phase 2, it would be Phase 2, it would be important to evaluate important to evaluate fully the cost of fully the cost of alternatives to full alternatives to full scale electricity scale electricity access for the poorer, access for the poorer, less densely less densely populated northern populated northern areas. areas.

Mainstreaming Mainstreaming vulnerability and vulnerability and exclusion through a exclusion through a multimulti--sector sector framework. framework. Streamlining Streamlining budgetary allocations budgetary allocations and disbursements.and disbursements.

Therefore a minimum Therefore a minimum of half the lifeline of half the lifeline ‘‘leaksleaks’’ to the nonto the non--poor.poor.Compound houses are Compound houses are not poorer than nonnot poorer than non--compound houses and compound houses and are not necessarily are not necessarily better of with better of with additional or additional or individual meters.individual meters.

Absence of clear Absence of clear definitions creates definitions creates problems of problems of mainstreaming.mainstreaming.The approach to The approach to vulnerability and vulnerability and exclusion has been more exclusion has been more ad hoc and lacks ad hoc and lacks sectoralsectorallinkages even with linkages even with povertypoverty--focused focused interventions. There are interventions. There are also structural barriers of also structural barriers of institutions, which are at institutions, which are at the forefront of poverty the forefront of poverty reductionreduction..

The methods used The methods used are:are:

Analysis of statistical Analysis of statistical data sets like data sets like GLSS, CWIQ.GLSS, CWIQ.

Ghana Housing Ghana Housing survey, survey, Demographic Demographic and Health and Health

Surveys.Surveys.

Vulnerability and Vulnerability and ExclusionExclusion

ObjectivesObjectivesTo expand the set of To expand the set of

indicators on indicators on vulnerability vulnerability and exclusion and exclusion within the within the framework of framework of the GPRS the GPRS Monitoring and Monitoring and Evaluation.Evaluation.

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Effective targeting is Effective targeting is necessary and should be necessary and should be given further given further consideration, with consideration, with proper indicators on how proper indicators on how to do this and the to do this and the context within which this context within which this should take place.should take place.

Different approach to Different approach to policy making, which policy making, which targets causes of targets causes of vulnerability, must be vulnerability, must be the focus. The practice the focus. The practice of ad hoc focus on of ad hoc focus on particular groups or the particular groups or the symptoms of symptoms of vulnerability should vulnerability should belong to history. belong to history.

Development of effective Development of effective social protection policy social protection policy in Ghana will help the in Ghana will help the poor and the nonpoor and the non--poor poor in terms of employment in terms of employment generation and other generation and other financial services. financial services.

There is weakening There is weakening of social networks, of social networks, which has affected which has affected the potential for the potential for reducing reducing vulnerability and vulnerability and exclusion and the exclusion and the aged are mostly at aged are mostly at risk of falling into risk of falling into chronic poverty chronic poverty without family without family support.support.

There is ignorance There is ignorance on the part of the on the part of the vulnerable and the vulnerable and the excluded of rights excluded of rights and entitlements.and entitlements.

For the fieldwork and For the fieldwork and qualitative data qualitative data gathering, the study gathering, the study used interviews, used interviews, FGDsFGDs, , beneficiary assessments, beneficiary assessments, activity calendar and activity calendar and observation. There was observation. There was no indication of actualno indication of actualSample size used. Sample size used.

Undertake review of Undertake review of GPRS policies GPRS policies and and programmesprogrammes, , their impact on their impact on the vulnerable the vulnerable and excluded and excluded in managing in managing shocks and shocks and influencing influencing policy.policy.

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Policy attention to full Policy attention to full participation of the participation of the vulnerable and the vulnerable and the exclusion will be a big exclusion will be a big boost to social boost to social inclusion. In this inclusion. In this case, the local case, the local government government structures and civil structures and civil society should be society should be involved in a more involved in a more meaningful way.meaningful way.

Policy discussion on Policy discussion on creating a conducive creating a conducive atmosphere for atmosphere for smallholders to smallholders to benefit from available benefit from available business climate and business climate and development of development of FBOsFBOs..

Ineffective budgetary Ineffective budgetary allocations and allocations and disbursements also disbursements also affect poverty affect poverty reduction.reduction.There is absence of There is absence of early warning early warning systems for the systems for the allocation of allocation of resources to deal with resources to deal with occurred disasters. occurred disasters. This affects the poor This affects the poor

greatly.greatly.

Due to the Due to the predominance of predominance of smallholder farmers, smallholder farmers, agriculture agriculture modernization modernization policies must target policies must target them.them.

Primary and Primary and secondary secondary sources of data sources of data were used for were used for this study. this study.

1. The primary data 1. The primary data collection collection included included stakeholder stakeholder interviews, interviews, questionnaires. questionnaires.

Agriculture Agriculture ModernizationModernization

ObjectivesObjectivesFocuses on the Focuses on the

economic economic transformation transformation of the of the agriculture agriculture sector in Ghana sector in Ghana in order to in order to provide support provide support for the for the implementation implementation of the GPRSof the GPRS

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There is need to There is need to consider the impact consider the impact of different of different agriculture policies agriculture policies on different groups on different groups or categories of farm or categories of farm workers, in addition workers, in addition to proto pro--poor rather poor rather than prothan pro--growth growth policies, since propolicies, since pro--poor policies have a poor policies have a wider impact on the wider impact on the poor and vulnerable poor and vulnerable groups than progroups than pro--growth which have growth which have minimal impact on minimal impact on poverty reduction.poverty reduction.Access to information Access to information on existing facilities on existing facilities and information that and information that can help smallholder can help smallholder farmers and reduce farmers and reduce the level of risks the level of risks ought to be given ought to be given some attention.some attention.

These smallholder These smallholder farmers need farmers need information on information on existing business existing business avenues for avenues for enhancing their enhancing their productivity.productivity.Due to the use of Due to the use of biologically biologically improved varieties, improved varieties, there is increase there is increase production and production and employment.employment.Small annual growth Small annual growth in output of large in output of large smallholders smallholders impacts positively impacts positively on production and on production and employment and employment and therefore poverty therefore poverty reduction than reduction than higher growth in higher growth in output by the output by the

commercial sector.commercial sector.

2. Village2. Village--based based survey for survey for livelihood livelihood analysis analysis including including wealth wealth ranking.ranking.

3. Group 3. Group interviews, interviews, process process analysis, analysis, farming farming systems systems analysis and analysis and case studies.case studies.

4. 582 4. 582 questionnaires questionnaires were also were also administered administered to households to households belonging to belonging to different different wealth wealth

categoriescategories. .

To support the To support the process of process of policy repolicy re--design where design where necessary.necessary.

To assess the effects To assess the effects of existing of existing agriculture agriculture policies on policies on growth, growth, production production and poverty and poverty reduction.reduction.

To assess the extent To assess the extent of impact of of impact of transformation transformation on either on either compounding compounding or mitigating or mitigating the constraints the constraints faced by faced by smallholders smallholders or subsistence or subsistence farmers. farmers.

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Proper channels of Proper channels of communication or communication or dissemination of dissemination of relevant information relevant information on existing business on existing business avenues and facilities. avenues and facilities. should also be given should also be given policy consideration. policy consideration. These channels are These channels are those that would be those that would be understood and be understood and be easily accessed by the easily accessed by the target group, who are target group, who are the smallholder the smallholder

farmer.farmer.

Evaluation of existing Evaluation of existing policies like those in policies like those in the FASDEP,MTADP, the FASDEP,MTADP, AAGDS and the GPRS, AAGDS and the GPRS, would be helpful for would be helpful for further policy further policy discussion. In addition, discussion. In addition, to stemming the trend to stemming the trend of migration of the of migration of the rural poor farmers, rural poor farmers, and increase and increase employment of poor employment of poor people in the rural people in the rural areas, the policies areas, the policies should be well should be well targeted and focused targeted and focused to remove constraints to remove constraints of the poor farmers.of the poor farmers.

Farmers encounter Farmers encounter numerous risks like numerous risks like production, credit, production, credit, labourlabour /health, income /health, income and prices risks. In and prices risks. In addition, the addition, the performance of the performance of the sector is negatively sector is negatively affected by a number affected by a number of problems including of problems including weak linkages of weak linkages of research to practical research to practical activities. activities. There is weak There is weak researchresearch--extension extension farmer linkage; farmer linkage; inadequate marketing inadequate marketing systems; processing systems; processing facilities and facilities and inappropriate storage inappropriate storage facilities; poor access facilities; poor access to production areas.to production areas.Farmers encounter Farmers encounter numerous risks like numerous risks like production, credit, production, credit, labourlabour/health, income /health, income and prices risks. In and prices risks. In addition, the addition, the performance of the performance of the sector is negatively sector is negatively affected by a number affected by a number of problems including of problems including weak linkages of weak linkages of research to practical research to practical activities. activities.

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Analysis of GhanaAnalysis of Ghana’’s s Agriculture policy Agriculture policy framework must framework must include clearly include clearly specifies targets, specifies targets, policy instruments, policy instruments, key economic key economic variables that include variables that include constraints and policy constraints and policy

objectives.objectives.

In the context of In the context of poverty reduction, it is poverty reduction, it is important to get right important to get right the beneficiary targets the beneficiary targets of specific measures of specific measures or intervention, the or intervention, the percentage of the poor percentage of the poor who will benefit, their who will benefit, their geographic and subgeographic and sub--sector location. This sector location. This can help in becoming can help in becoming resultsresults--oriented with oriented with implementation of implementation of measures.measures.There is therefore the There is therefore the need for interneed for inter--sectoralsectorallinkages within the linkages within the agriculture sector agriculture sector itself for proper itself for proper harnessing of harnessing of resources and its resources and its utilization.utilization.

Farmers encounter Farmers encounter numerous risks like numerous risks like production, credit, production, credit, labourlabour/health, income /health, income and prices risks. In and prices risks. In addition, the addition, the performance of the performance of the sector is negatively sector is negatively affected by a number affected by a number of problems including of problems including weak linkages of weak linkages of research to practical research to practical activities.activities.There is weak There is weak researchresearch--extension extension farmer linkage; farmer linkage; inadequate marketing inadequate marketing systems; processing systems; processing facilities and facilities and inappropriate storage inappropriate storage facilities; poor access facilities; poor access to production areas.to production areas.The policies and The policies and interventions in the interventions in the GPRS/FASDEP are GPRS/FASDEP are likely to reduce some likely to reduce some of the major of the major constraints facing constraints facing smallholder farmers, smallholder farmers, the realization of the realization of which would be which would be determined by the determined by the implementation implementation strategies adopted.strategies adopted.

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Policy consideration Policy consideration for women and for women and welfare dependent welfare dependent persons for other persons for other employment employment generation avenues generation avenues because of the because of the limitation they limitation they encounter with encounter with indirect employment indirect employment opportunities from opportunities from policies target at the policies target at the

commercial sector.commercial sector.

Because of the strong Because of the strong implications of implications of negative perceptions negative perceptions by the poor on by the poor on achievement of achievement of decentralization decentralization objectives for poverty objectives for poverty reduction targets, reduction targets, .there is the need for .there is the need for dissemination of dissemination of information on the information on the activities of the local activities of the local government structures government structures education as a key education as a key policy issue.policy issue.

Welfare dependent Welfare dependent persons, and poor persons, and poor women are the most women are the most vulnerable in terms of vulnerable in terms of indirect employment indirect employment opportunities from opportunities from policies directed at the policies directed at the commercial sector.commercial sector.

The poor have very The poor have very negative perceptions negative perceptions about about decentralization. They decentralization. They view decentralization view decentralization as beneficial to the as beneficial to the

elite or nonelite or non--poorpoor..Unhealthy rivalry and Unhealthy rivalry and unnecessary unnecessary competition exist competition exist between institutions between institutions at the district level.at the district level.

Data methodsData methods used used include include

Stakeholder/ Stakeholder/ beneficiary beneficiary analysis, risk analysis, risk analysis, data analysis, data on GPRS pilot on GPRS pilot study districts, study districts, policy policy documents, documents, CWIQ, GLSS4, CWIQ, GLSS4, poverty map of poverty map of Ghana and 2000 Ghana and 2000 population and population and

housing census.housing census.

ProPro--Poor Poor DecentralizationDecentralization

ObjectivesObjectivesProvide an inProvide an in-- depth depth

understanding understanding of the impact of of the impact of alternative alternative policy reforms policy reforms on the poor.on the poor.

A look at resource A look at resource mobilization, mobilization, management management and allocation.and allocation.

Attention to capacity Attention to capacity constraints of constraints of local local government in government in the delivery of the delivery of services for the services for the enhancement of enhancement of sociosocio--economic economic development.development.

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Addressing the institutional Addressing the institutional inconsistencies or dilemmas and inconsistencies or dilemmas and poor conditions of service of poor conditions of service of workers of these institutions from a workers of these institutions from a policy perspective will help with the policy perspective will help with the success of decentralization policy. success of decentralization policy. The institutional dilemmas can be The institutional dilemmas can be addressed through changes from addressed through changes from the dual hierarchy model of the dual hierarchy model of administration to the single line administration to the single line integrated model or system (see pp. integrated model or system (see pp. 3232--35 of main report for details).35 of main report for details).Building capacities of DAs and Building capacities of DAs and improving on their finances are improving on their finances are areas that should attract policy areas that should attract policy attention.attention.Effective actions are needed to Effective actions are needed to ensure that proensure that pro--poor poor decentralization is taking place or decentralization is taking place or being effected. This is important being effected. This is important because, implementation of because, implementation of decentralization does not decentralization does not necessarily mean that projects or necessarily mean that projects or policies are going to be in the policies are going to be in the interests and for the benefits of the interests and for the benefits of the poor that is propoor that is pro--poor.poor.

Improvement in Improvement in closeness of closeness of government government services to the services to the people does not people does not mean that mean that decentralization decentralization is prois pro--poor. poor.

Ten districts Ten districts were selected were selected for the for the administration administration of the of the questionnaires questionnaires totaling 250. totaling 250. Actual total Actual total sample size was sample size was not indicated in not indicated in the report.the report.

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Summary and conclusionSummary and conclusion

nn All PSIA studies have been used All PSIA studies have been used extensively to inform the revision of extensively to inform the revision of the second generation of the national the second generation of the national agendaagenda--GPRS II and the review of GPRS II and the review of related sector policies. related sector policies.

Principal Principal areasareas are: are:

a. Food and Agriculture sectora. Food and Agriculture sectorDevelopment Policy (FASDEP)Development Policy (FASDEP)and related sectors. and related sectors.

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Summary and conclusion (contSummary and conclusion (cont’’d)d)

b. Principal reference for the review ofb. Principal reference for the review ofall issues related to Vulnerabilityall issues related to Vulnerabilityand Social Exclusion (V&E). and Social Exclusion (V&E). viz. *V & E section of the GPRS II.viz. *V & E section of the GPRS II.

*National Social Protection*National Social ProtectionStrategy.Strategy.

c. Supporting reference for processes c. Supporting reference for processes under the onunder the on--going decentralization.going decentralization.

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