Extent of Poverty and Inequality among Households in the Techiman Municipality of Brong Ahafo Region, Ghana

Abstract

This study identified the poverty status and expenditure inequality among households in the Techiman Municipality. Multistage sampling technique was employed in enumerating three hundred(300) households in six(6) communities through the administration of the pre-tested questionnaire. Data collected were analyzed using Descriptive Statistics, Foster-Greer-Thorbecke (FGT) model, Lorenz curve and Gini Coefficient. The relative poverty line was calculated to be GH¢ 370 per month. The proportion of poor people in the study area was estimated to be 59.7% representing a little over half of the sampled respondents who are unable to meet a monthly per capita consumption expenditure of GHC 370. Based on the indices of the poverty depth, poor households required averagely GH¢156 to escape poverty. Poverty severity index was 0.17 indicating 17.1% of the poorest among the poor. The shape of the Lorenz Curve shows high consumption expenditure equality with a Gini-coefficient value of 0.25. It is therefore recommended that, since livelihood status remained below the required levels for large parts of the populace during this research, identified poorest of poor households should be targeted by Government, NGOs and Municipal Assembly for safety nets such as Livelihood Empowerment Against Poverty (LEAP), in aiding to alleviate poverty among the vulnerable population. In addition, poor households should be targeted by NBSSI and other NGOs involve in entrepreneurship development programmes for training in microenterprise development so as to escape poverty.