A recent study conducted by the World Bank, Oxfam in Ghana, and the Institute of Statistical, Social and Economic Research (ISSER) has found that the Free Senior High School (Free SHS) policy introduced in 2017 has had a limited impact on reducing poverty. The study, titled “Fiscal interventions and welfare in Ghana: A commitment to equity (CEQ) assessment using the Ghana Living Standards Survey (round 7),” suggests that the universal approach of the policy fails to consider significant disparities in access to secondary education between affluent and disadvantaged households.
The research, launched at an event in Accra, utilized an analytical simulation tool called the Microsimulation Tool on Fiscal Incidence Analysis, built on the Ghana Living Standards Survey (GLSS). The tool provides insights into the distributional impacts of policies and reforms on the poor, vulnerable, and overall population.
According to Dr. Kwadwo Danso-Mensah, Director of Research at the International Centre for Evaluation and Research, Ghana experienced steady economic growth from 2005 to 2017, but the benefits were not equitably distributed, leading to a decline in poverty reduction and rising inequality.
The study found that the Free SHS policy resulted in a marginal reduction in poverty rates, with a decrease of 0.07 percentage points and 0.22 percentage points at the national lower and upper poverty lines, respectively. However, the policy was considered less progressive due to its universal nature, which may favor richer households with higher access to secondary education.
Dr. Danso-Mensah emphasized the need for comprehensive analysis of government spending and taxation instruments to understand their impact on poverty and inequality. The study’s findings highlight the importance of targeted interventions to address disparities in access to education and promote inclusive growth.
Paul Coral, Senior Economist at the World Bank, explained that the Microsimulation Tool allows for the assessment of policy impacts on the poor, vulnerable, and overall population, enabling the identification of progressive and regressive policies.
