Paper short abstract:

This paper aims to set the economic context for state welfare programmes in developing countries, to describe a range of recent Ghanaian policy measures which aim to establish a social protection system, and to make an assessment of the impact of these measures.

Paper long abstract:

The authors review the state role in welfare in Ghana in a chapter of their forthcoming book, The Economy of Ghana: 50 Years of Economic Development (Palgrave Macmillan). This paper develops the chapter into a country case study.

There is controversy regarding the involvement of the state in income distribution. Brown and Jackson (1990), Stiglitz (2000) and Musgrave (1959), among others, justify state intervention to maximise social welfare through income re-distribution, while Hayek (1960), Ryan (2012) and other libertarians are in opposition, believing that state intervention will hamper growth. The neoliberal agenda argues for spending limited state funds on infrastructural and other projects urgently needed to boost growth of the private enterprise sector, promoting sustainable economic growth through sectoral developments. However, social protection support programmes are increasingly being introduced in the 'developing world' and the Ghanaian experience is of great interest in this context.

The Ghana Poverty Reduction Strategy for 2006-2009 relies on economic growth for the achievement of significant poverty reduction. However, a National Social Protection Strategy was adopted in 2008 aiming to prioritise sector-wide social protection interventions across the country. The Ministry of Gender, Children and Social Protection was reconstituted in 2013 with a focus on livelihoods and poverty reduction. Specific programmes include cash transfers, non-cash transfers, skills development, selective subsidies, and active labour market interventions. An ILO review of Ghanaian social protection measures was published in 2015.

The paper will present details of recent social protection policy in Ghana and attempt an assessment of its impact.