The Institute of Statistical, Social, and Economic Research (ISSER) at the University of Ghana has expressed concern over the rising inequality gap in the country, despite the significant rise in per capita income.
This observation was made in its latest publication titled “A Critical Assessment of the 2024 Mid-Year Budget by ISSER.”
According to ISSER, there has been a significant rise in per capita income between 2016 and 2023. Per capita income is an indicator that measures the average income earned by citizens in a country over a period.
ISSER indicates that between 2016 and 2023, Ghana’s per capita income saw a close to 20% increase from $1,979 to $2,365.
However, ISSER observes that despite the increase in average per capita income, inequalities in the country remain widespread.
This observation suggests that the increase in per capita income could be driven by the top earners becoming significantly richer, while the majority see little to no increase in their incomes. This concentration of wealth implies that economic growth primarily benefits the wealthy.
Given this disparity, ISSER recommends that the government prioritize policies that will ensure the redistribution of income to bridge the inequality gap.
“We recommend accelerating economic growth while implementing better policies to redistribute income,” parts of the ISSER review on the 2024 Mid-Year Budget read.
Income inequalities, apart from being an economic issue, are also considered a security threat. Widespread inequality has the potential to cause social tensions and unrest. This is because people who feel left behind by economic growth may become frustrated and disillusioned, potentially leading to protests and instability.
