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Poverty Reduction Strategies in a Budget-Constrained Economy: The Case of Ghana

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Author Info
Maurizio Bussolo
Jeffery I. Round
Abstract

Analyses of responses to reforms in Ghana seem to indicate that current policies may be benefiting different segments of society disproportionately. Also, experience in the 1990s suggests that recurring budget deficits may adversely affect reform and poverty alleviation programmes. The aim of this paper is to carry out some experiments using variants of a stylised CGE model, to ascertain the possible effects on poverty of a range of budget-neutral redistributive income transfers. The analysis is based on a social accounting matrix (SAM) for Ghana for the year 1993, which has been substantially modified for the present application. The CGE model is a real-side, static model and therefore excludes the monetary and financial sectors and is designed in the tradition of other OECD Development Centre models. The experimental design follows one employed by Adelman and Robinson (1978) for Korea, and Chia et al. (1992) for the Côte d’Ivoire. However the experiments are designed with a view ...


L’analyse des réactions aux réformes introduites au Ghana semble indiquer que les politiques actuelles auraient des effets bénéfiques disproportionnés sur les différents segments de la population. De même, l’expérience des années 1990 suggère que les déficits budgétaires récurrents pourraient affecter négativement les programmes de réforme et de réduction de la pauvreté. L’objectif de ce document est de se livrer à quelques expériences en faisant appel à des variantes d’un modèle EGC stylisé, afin d’évaluer les effets possibles sur la pauvreté d’une série de transferts de revenues redistributifs sans incidence budgétaire. L’analyse s’appuie sur une matrice de comptabilité sociale (MCS) du Ghana pour l’année 1993, largement modifiée pour l’application qui en est faite ici. Le modèle EGC est un modèle statique du secteur réel et exclut donc les secteurs monétaires et financiers ; il est conçu dans le même esprit que les autres modèles mis au point par le Centre de Développement de ...

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File URL: http://dx.doi.org/10.1787/083265263465
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Paper provided by OECD, Development Centre in its series OECD Development Centre Working Papers with number 220.

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Date of creation: Nov 2003
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Handle: RePEc:oec:devaaa:220-en

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