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In This Issue...Links to the NewsMarch 11, 2016

Who cares about the North-South divide in standards of living?
By Masahudu Ankiilu Kunateh

Twenty years of rapid economic development in Ghana, under present and successive governments, have done little, if anything, to reduce the historical North-South divide in standards of living. While rural development and urbanization have led to significant poverty reduction in the South, similar dynamics have been largely absent from the northern part of Ghana; comprising Northern, Upper East and Upper West Regions, which covers 40% of Ghana’s land area.

According to latest World Bank report, one out of every three Ghanaian cannot afford the basic necessities of life. This means 30 percent of Ghanaians are poor, in spite of several years of rapid economic development in the country.

 

The disparity in poverty range in the country could not have been wider, while on the average 20 percent of Ghanaians in the south are poor, a whooping figure of 63 in every 100 Ghanaians in the north has no means of acquiring the basic necessities of life.

Furthermore, between 1992 and 2006, the number of the poor declined by 2.5million in the south and increased in the north by 0.9million. In sharp contrast with the south which covers 60% of the country’s landmass, there was no significant decline in the proportion of poor in the population of the north.

Today, the majority of Ghana’s poor live in northern Ghana, where they are predominantly farmers dependent on the pattern of rainfall in the region.  They grow only food crops like sorghum, millet, maize, ground-nut, and yam. Livestock also do well in this zone of the country. These livestock include cattle, sheep, goat, poultry; especially guinea fowl, and pig.

These farmers are highly vulnerable to shocks given the weather and limited diversification of their income sources. Weather condition in the north does not encourage all-year-round as in the south. Amazingly, the northern parts of the country have limited irrigation facilities as compared with the south with all the state-of-art irrigation facilities. While the poor have little education, increases in education in northern Ghana do not seem to have provided greater livelihood opportunities. This is reflective of the absence of better socio-economic condition of these regions.

To cope with the various shocks to which they are exposed (floods, droughts, insects, diseases, conflicts-all of which are preventable with relevant infrastructure, public services, insurance and conflict resolution mechanisms) the northern poor tend to mortgage their prospects to eventually escape poverty by depleting their human and physical capital by adopting risky behaviours, including child migration or illegal artisanal mining.

Additionally, the draw of oil boom services in cities mostly located in the south, couple with climate change, threaten to further widen the north south gap. To this end, the Lead Economist of World Bank, Sebastien Dessus warns that “any poverty alleviation strategy for Ghana must put poverty in northern Ghana at centre stage, and acknowledge its specific causes in the design of possible interventions”.

He added that this consideration is not only important for the sake of efficiency in poverty reduction, but also to mitigate the development of horizontal inequalities, foster national unity through balanced development and consolidate democratic gains achieved in the last two decades.

 

Furthermore, international experiences indeed point to significant risks of civil conflict that can be brought on by the growing horizontal inequalities in young democracies in particular, the World Bank economist admonished.

The south is isolated from the north economically and unable to integrate itself with the more dynamic south for lack of adequate infrastructural connectivity. Yet, this integration is essential for the north given the need to tap into resources from outside the region in order to pull itself out of subsistence livelihoods and escape poverty

In its "Tackling poverty in Northern Ghana" report, the World Bank observes that the last two decades have seen a convergence in human capital endowments between the north and the south thanks to government, development partners and non-governmental organisations’ programmes in the region, but a divergence in poverty and economic outcomes
is needed.

 

The World Bank report shows that, while national road networks could be further expanded and improved, this is unlikely to have a large impact on regional disparities, given the relatively high road density and degree of connectivity that already exists between the north and the south.

 

Rather, low farm output and productivity, combined with the low density of farms in some parts of northern Ghana, make economic integration expensive in terms of rural network expansion to connect the main North-South backbone of infrastructure and markets in the presence of high fixed costs and/or the absence of economies of scale.

To add up, migrants from the north to the south are largely economically unsuccessful and motivated by push factors that expel migrants out of desperation to poor quality jobs. Although migrants from the north do not make up the biggest share of migrants in Ghana, they do not do as well from migration as their southern counterparts. Migrations from the north tend to migrate out of desperation and, given their lower level of education, migration often results in them doing high risk jobs or putting themselves in positions of vulnerability. The young girls carry heavy loads on their heads on the streets of the cities just to eke out a living. They sleep on the streets and markets and earn ranging GHC3 to GHC5 a day. The story is very horrible for the young boys who migrante to the mining areas in the south.

According to demographic experts, successful north-south migration, in terms of poverty alleviation, is further hampered by the south’s low capacity to absorb large numbers of migrants from the north for cultural, social, economic, and urban-planning reasons. This, they say limits the development of economic and informational north-south integration channels through diasporas.

Tackling poverty in Northern Ghana therefore calls for interventions that go beyond spatially blind policies and are well targeted within  northern Ghana with a view to supporting livelihood opportunities and reducing vulnerability to the various climatic, economic and political shocks that plague these unfortunate regions.

People could live well from agriculture in northern Ghana if low productivity was addressed by a more proactive and spatial approach to addressing infrastructural gaps, and technology and business climate constraints. Agriculture in the north has been constrained by the lack of well planned and coordinated investment in infrastructure building - particularly rural roads and irrigation. With these the question still remains!





 


 

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